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.Management Sciences
Category: Stocks
A financial intermediary is a middleperson between ?
A. buyers and sellers
B. husbands and wives.
C. borrowers and lenders.
D. labor unions and firms
If the public consumes Rs 100 billion less and the government purchases Rs100 billion more (other things unchanging), Which of the following statement is true ?
A. Saving is unchanged
B. There is an increased in saving and the economy should grow more quickly
C. There is a decrease in saving and the economy should grow more slowly
D. There is not enough information to determine what will happen to saving
Credit risk refers to a bond’s ?
A. Probability of default
B. Price-earnings ratio
C. dividend
D. tax treatment
If GDP = Rs1,000 Consumption = Rs 600 taxes = Rs 100, and government purchases = Rs200, how much is saving and investment ?
A. Saving = Rs 300 investment = Rs 300
B. Saving = Rs 200 investment = Rs 100
C. Saving = Rs 100 investment = Rs 200
D. Saving = Rs 0 investment = Rs 0
An increase in the budget deficit will ?
A. raise the real interest rate and decrease the quantity of loanable funds demanded for investment
B. lower the real interest rate and increase the quantity of loaable funds demanded for investment
C. raise the real interest rate and increase the quantity of loandable funds demanded for investment
D. lower the real interest rate and decrease the quantity of loanable funds demanded for investment
National Saving (or just saving) is equal to ?
A. none of these answers
B. investment + consumption expenditures
C. private saving + public saving
D. GDP government purchases
If an increase in the budget deficit reduces national saving and investment we have witnessed a demonstration of ?
A. intermediation
B. equity finance
C. crowding out
D. the investment fund effect
If the government increases investment tax credits and reduces taxes on the return to saving at the same time ?
A. the real interest rate should fall
B. the real interest rate should rise
C. the impact on the real interest rate is indeterminate
D. the real interest rate should not change
Which of the following sets of government policies is the most growth oriented ?
A. Lower taxes on the returns to saving, provide investment tax credits and lower the deficit
B. Increase tax on the returns to saving Provide investment tax credits and increase the deficit
C. Increase tax on the returns to saving Provide investment tax credits and lower the deficit
D. Lower taxes on the returns to saving Provide investment tax credits and increase the deficit
Investment is ?
A. The purchase of goods and services
B. The purchase of capital equipment and structures
C. When we place our saving in the bank
D. The purchase of stocks and bonds
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