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MCQs

Total Questions : 156 | Page 16 of 16 pages
Question 151. The interest rate which is not reinvested but is earned is classified as
  1.    invested interest
  2.    simple interest
  3.    earned interest
  4.    unstated interest
 Discuss Question
Answer: Option B. -> simple interest
Answer: (b).simple interest
Question 152. When interest rate is lower than equilibrium rate of borrowing loanable funds, then the financial system has
  1.    surplus of funds
  2.    deficit of funds
  3.    short-term funds
  4.    long-term funds
 Discuss Question
Answer: Option B. -> deficit of funds
Answer: (b).deficit of funds
Question 153. The formula of effective annual return is written as
  1.    (1+r) c - 1
  2.    (2+r) c - 2
  3.    (3+r) c - 3
  4.    (1+r) c - 5
 Discuss Question
Answer: Option A. -> (1+r) c - 1
Answer: (a).(1+r) c - 1
Question 154. If the equilibrium interest rate increases and the curve of funding supplied shifts to the left then the impact on spending is
  1.    increase in near term
  2.    decrease in near term
  3.    increase in long term
  4.    decrease in long term
 Discuss Question
Answer: Option A. -> increase in near term
Answer: (a).increase in near term
Question 155. The monetary expansion increases and gives way to a decrease in equilibrium interest rate, then supply curve of funds must shift
  1.    up and to the left
  2.    up and to the right
  3.    down and to the left
  4.    down and to the right
 Discuss Question
Answer: Option D. -> down and to the right
Answer: (d).down and to the right
Question 156. The shift of demand curve to down and then to the left resulting in
  1.    support from World Bank
  2.    decreases in funds traded
  3.    increase in funds traded
  4.    rise of international funds
 Discuss Question
Answer: Option B. -> decreases in funds traded
Answer: (b).decreases in funds traded

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