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.Management Sciences
Category: Stocks
Which of the following statements is true ?
A. Long-term bonds tend to pay less interest than short-term bonds
B. Government bonds pay less interest than comparable corporate bounds
C. Investment funds are riskier than single stock purchases because the performances of so many different firms can affect the return of a mutual fund
D. A stock index is a directory used to locate information about selected stocks.
If government spending exceeds tax collections?
A. there is a budget deficit
B. None of these answers
C. There is a budget surplus
D. private saving is positive
If Pakistani citizens become more thrifty we would expect ?
A. The supply of loanable funds in the Pakistan loanable funds market to shift to the right and the real interest rate to fall.
B. The demand for loanable funds in the Pakistan loanable funds market to shift to the right and the real interest rate to rise
C. The demand for loandable funds in the Pakistan loanable funds market to shift to the right and the real interest rate to fall
D. The supply of loandable funds in the Pakistan loanable funds market to shift to the right and the real interest rate to rise
If the Supply of loanable funds is very inelastic (steep) Which policy would likely increase saving and investment the most ?
A. a reduction in the budget deficit
B. an increase in the budget deficit
C. an investment tax credit
D. None of the above
An increase in the budget deficit that causes the government to increase its borrowing ?
A. Shifts the supply of loanable funds to the right
B. Shift the demand for loandbale funds to the left
C. Shift the demand for loanable funds to the right
D. Shift the supply of loanable funds to the left
Which of the following is an example of equity finance ?
A. Corporate bonds
B. Company shares
C. All of these answers are equity finance
D. Government bonds
An increase in the budget deficit is ?
A. an increase in public saving
B. a decrease in private saving
C. None of these answers
D. a decrease in public savings
An increase in the budget surplus ?
A. Shifts the supply of loanable funds to the left and increase the real interest rate
B. Shift the supply of loanable funds to the right and reduces the real interest rate.
C. Shifts the demand for loanable funds to the right and increases the real interest rate.
D. Shifts the demand for loanable funds to the left and reduces the real interest rate
If Pakistani citizens become less concerned with the future and save less at each real interest rate ?
A. Real interest rates rise and investment falls
B. Real interest rates rise and investment rises
C. Real interest rates fall and investment rises
D. Real interest rates fall and investment falls
Which of the following financial market securities would probably pay the highest interest rate ?
A. A bond issued by a startup company
B. A government bond issued by the government of France.
C. A bond issued by a blue-chip company
D. An investment funds with portfolio of corporate bonds issued by blue chip companies
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