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MCQs

Total Questions : 156 | Page 3 of 16 pages
Question 21. If there is an improve in economic condition in foreign countries, the local community of investors start
  1.    investing abroad
  2.    investing in domestic markets
  3.    increase in sovereign risk
  4.    increase in country risk
 Discuss Question
Answer: Option A. -> investing abroad
Answer: (a).investing abroad
Question 22. The equilibrium interest rate increases and the economic conditions decreases then supply curve must shift to
  1.    down and to the left
  2.    down and to the right
  3.    up and to the left
  4.    up and to the right
 Discuss Question
Answer: Option C. -> up and to the left
Answer: (c).up and to the left
Question 23. The funds provided by the suppliers of the funds in the financial markets are classified as
  1.    compounded funds
  2.    savings funds
  3.    supply of loan-able funds
  4.    demand of loan-able funds
 Discuss Question
Answer: Option C. -> supply of loan-able funds
Answer: (c).supply of loan-able funds
Question 24. The participants of financial system reduce the demand for their funds if the economic growth in
  1.    domestic market is stagnant
  2.    domestic market is not stagnant
  3.    global market is stagnant
  4.    global market is not stagnant
 Discuss Question
Answer: Option A. -> domestic market is stagnant
Answer: (a).domestic market is stagnant
Question 25. According to loanable funding theory, the net suppliers of funds are
  1.    insurance companies
  2.    government
  3.    corporations
  4.    households
 Discuss Question
Answer: Option D. -> households
Answer: (d).households
Question 26. According to loanable funds theory, the fall in interest rates result into
  1.    zero demand of funds
  2.    equilibrium demands of funds
  3.    higher demand of funds
  4.    lower demand of funds
 Discuss Question
Answer: Option C. -> higher demand of funds
Answer: (c).higher demand of funds
Question 27. If the equilibrium interest rate decreases and the curve of funding supplied shifts to the right and downwards, then the impact on spending will
  1.    increase in near term
  2.    decrease in near term
  3.    increase in long term
  4.    decrease in long term
 Discuss Question
Answer: Option B. -> decrease in near term
Answer: (b).decrease in near term
Question 28. The theory which states that interest equilibrium is the result of demand and supply in trading markets, is classified as
  1.    saving fund theory
  2.    constant funds
  3.    borrowed theory
  4.    loanable funds theory
 Discuss Question
Answer: Option D. -> loanable funds theory
Answer: (d).loanable funds theory
Question 29. The value which converts series of equal payments in to the value received at end time of investment is classified as
  1.    present value of annuity
  2.    future value of annuity
  3.    decreased value of annuity
  4.    increased value of annuity
 Discuss Question
Answer: Option B. -> future value of annuity
Answer: (b).future value of annuity
Question 30. The decrease in present value at decreasing rate only, when there is
  1.    increase in availability
  2.    decrease in availability
  3.    decrease in interest rate
  4.    increase in interest rate
 Discuss Question
Answer: Option D. -> increase in interest rate
Answer: (d).increase in interest rate

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