MCQOPTIONS
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MCQOPTIONS
This section includes 749 Mcqs, each offering curated multiple-choice questions to sharpen your Master of Arts in Economics (M.A. Economics) knowledge and support exam preparation. Choose a topic below to get started.
| 651. |
The plant and equipment are examples of |
| A. | long term fixed assets |
| B. | short term fixed assets |
| C. | short term working capital |
| D. | long term working capital |
| Answer» B. short term fixed assets | |
| 652. |
The ability of an asset to be converted in to cash very quickly is classified as |
| A. | variable securities |
| B. | convertible securities |
| C. | liquidity |
| D. | constant securities |
| Answer» D. constant securities | |
| 653. |
The risk faced by financial institutions in which advancement of technology does not produce savings in cost is classified as |
| A. | savings risk |
| B. | advance risk |
| C. | cost risk |
| D. | technology risk |
| Answer» E. | |
| 654. |
For the other non-price conditions, the increase in equilibrium interest rate leads to |
| A. | zero restrictiveness |
| B. | negative restriction |
| C. | increase restrictiveness |
| D. | decrease restrictiveness |
| Answer» E. | |
| 655. |
When the business companies started investing with the funds generated internally is a point which shows that |
| A. | cost of loanable funds is high |
| B. | cost of loanable fund is low |
| C. | equilibrium is zero |
| D. | equilibrium is negative |
| Answer» B. cost of loanable fund is low | |
| 656. |
The interest rate considering compounding of interest rate and is earned in 12 months, is considered as |
| A. | effective annual return |
| B. | ineffective annual return |
| C. | decrease in return |
| D. | increase in return |
| Answer» B. ineffective annual return | |
| 657. |
According to demand for funds curve, the demand curve shifts down and to the left if there is a decrease in |
| A. | equilibrium supply |
| B. | equilibrium savings |
| C. | equilibrium demand |
| D. | equilibrium interest rate |
| Answer» E. | |
| 658. |
The loans for cars and home appliances is classified as loans for |
| A. | durable goods |
| B. | non-durable goods |
| C. | equilibrium goods |
| D. | non-equilibrium goods |
| Answer» B. non-durable goods | |
| 659. |
Factor proceeds are part of which section of balance of payments |
| A. | liabilities |
| B. | current account |
| C. | balance of trade |
| D. | both a and b |
| Answer» C. balance of trade | |
| 660. |
The services such as commercial trade transactions and positions in financial investments provided by financial institutions are classified as |
| A. | trade services |
| B. | investment services |
| C. | agent services |
| D. | commercial services |
| Answer» D. commercial services | |
| 661. |
The bonds which are denominated in dollars and are issued in canters of London and Luxemburg are classified as |
| A. | London bonds |
| B. | Eurodollar bonds |
| C. | central bonds |
| D. | decentralize bonds |
| Answer» C. central bonds | |
| 662. |
The markets in which transactions are done through computers and telephone without any specific location are classified as |
| A. | past counter market |
| B. | future counter market |
| C. | over the counter markets |
| D. | capital counter market |
| Answer» D. capital counter market | |
| 663. |
When maturities of liabilities and assets are mismatched and risk incurred by financial intermediaries then this risk is classified as |
| A. | interest rate risk |
| B. | channel rate risk |
| C. | economic risk |
| D. | issuance risk |
| Answer» B. channel rate risk | |
| 664. |
In primary markets, the property of shares which made it easy to sell newly issued security is considered as |
| A. | increased liquidity |
| B. | decreased liquidity |
| C. | money flow |
| D. | large funds |
| Answer» B. decreased liquidity | |
| 665. |
If the demand of loanable demands decrease then the borrowing cost of funds is |
| A. | upside |
| B. | lower |
| C. | higher |
| D. | zero |
| Answer» C. higher | |
| 666. |
The risk which arises all the activities from contingent liabilities and assets is considered as |
| A. | off balance sheet risk |
| B. | income statement risk |
| C. | balance of trade risk |
| D. | balance of payment risk |
| Answer» B. income statement risk | |
| 667. |
From this which is NOT a cash outflow for organization |
| A. | depreciation. |
| B. | dividends. |
| C. | interest payments. |
| D. | taxes. |
| Answer» B. dividends. | |
| 668. |
When interest rate is higher than equilibrium rate of borrowing loanable funds then the financial system has |
| A. | short-term funds |
| B. | long-term funds |
| C. | surplus of funds |
| D. | deficit of funds |
| Answer» D. deficit of funds | |
| 669. |
The issuers that are not involved directly in funds transferring are classified as |
| A. | individual issuers |
| B. | corporate issuers |
| C. | local issuers |
| D. | global issuers |
| Answer» C. local issuers | |
| 670. |
On an accounting report of cash flows an "increase (decrease) in cash and cash equivalents" shows |
| A. | a cash flow from operating activities |
| B. | a cash flow from investing activities. |
| C. | a cash flow from financing activities. |
| D. | none of above. |
| Answer» E. | |
| 671. |
In foreign financial markets, the growth is represented by the factors such as |
| A. | savings in foreign countries |
| B. | investment opportunities |
| C. | accessible information |
| D. | all of the above |
| Answer» E. | |
| 672. |
If the equilibrium interest rate increases and the curve of funding supplied shifts to the left then the impact on spending is |
| A. | increase in near term |
| B. | decrease in near term |
| C. | increase in long term |
| D. | decrease in long term |
| Answer» B. decrease in near term | |
| 673. |
The situation in which the claims by financial institutions is more considerable for investors then the claims issued by corporations, is classified as |
| A. | asset transformers |
| B. | liability transformers |
| C. | issuing transformers |
| D. | claiming transformers |
| Answer» B. liability transformers | |
| 674. |
Service acquired from other state is related to |
| A. | dumping |
| B. | bribes |
| C. | outsourcing |
| D. | exchange policy |
| Answer» D. exchange policy | |
| 675. |
In the money markets, the excess supply of funds from agents is for |
| A. | past terms |
| B. | future terms |
| C. | long term |
| D. | short term |
| Answer» E. | |
| 676. |
Not a profit-maximizing business is: |
| A. | International Monetary fund |
| B. | International Bank for Reconstruction and Development |
| C. | International financial corporation |
| D. | World trade organization |
| Answer» C. International financial corporation | |
| 677. |
The accounts receivable and inventory are examples of |
| A. | short term working capital |
| B. | long term working capital |
| C. | long term fixed assets |
| D. | short term fixed assets |
| Answer» B. long term working capital | |
| 678. |
The monetary expansion increases and gives way to a decrease in equilibrium interest rate, then supply curve of funds must shift |
| A. | up and to the left |
| B. | up and to the right |
| C. | down and to the left |
| D. | down and to the right |
| Answer» E. | |
| 679. |
The risk of financial institutions which states the mismatching asset maturities and liability maturities, is classified as |
| A. | selling intermediation |
| B. | maturity intermediation |
| C. | direct intermediation |
| D. | indirect intermediation |
| Answer» C. direct intermediation | |
| 680. |
The market value size of outstanding instruments of capital markets depends on factors |
| A. | primary cash flows |
| B. | number of issued securities |
| C. | market prices of securities |
| D. | both b and c |
| Answer» E. | |
| 681. |
The earned interest rate which is reinvested in other investment is classified as |
| A. | compound interest |
| B. | investment risk |
| C. | interest rate |
| D. | stated rate |
| Answer» B. investment risk | |
| 682. |
If the risk of financial security decreases and the supply curve shifts to the right and downwards then the impact on equilibrium of interest rate must |
| A. | remain constant |
| B. | fluctuate |
| C. | decreases |
| D. | increases |
| Answer» D. increases | |
| 683. |
The type of institutions that write securities, engage in brokerage and security trading are considered as |
| A. | trading institutions |
| B. | activity institutions |
| C. | investment banks |
| D. | mortgage banks |
| Answer» D. mortgage banks | |
| 684. |
The institutions that facilitate channeling of funds and all the related functions are classified as |
| A. | financial institutions |
| B. | payable institutions |
| C. | non-financial institutions |
| D. | derivative institutions |
| Answer» B. payable institutions | |
| 685. |
Current Account in BOP characterize summary of stream of funds between particular country and all other country due to |
| A. | sale of assets |
| B. | purchase of goods and services |
| C. | liabilities of long term |
| D. | liabilities of short term |
| Answer» C. liabilities of long term | |
| 686. |
IMF was created in |
| A. | 1941 |
| B. | 1945 |
| C. | 1943 |
| D. | 1944 |
| Answer» E. | |
| 687. |
The inflation rate in United States is added into real rate of interest to calculate |
| A. | quoted interest rate in United States |
| B. | nominal interest rate in United States |
| C. | interest rate in United States |
| D. | discount rate of country |
| Answer» D. discount rate of country | |
| 688. |
Uruguay Round that has started |
| A. | earlier 8 years |
| B. | earlier 5 years |
| C. | earlier 10 year |
| D. | earlier 7 years |
| Answer» E. | |
| 689. |
The type of financial markets in which the corporations issues new funds to raise funds is classified as |
| A. | flow market |
| B. | primary markets |
| C. | secondary markets |
| D. | funding markets |
| Answer» C. secondary markets | |
| 690. |
The liquidity premium theory, unbiased expectations theory and market segmentation theory are the theories to describe |
| A. | term structure of segmentation |
| B. | term structure of interest rate |
| C. | term structure of premium |
| D. | term structure of inflation |
| Answer» C. term structure of premium | |
| 691. |
Berlin wall eliminate in |
| A. | 1980 |
| B. | 1983 |
| C. | 1988 |
| D. | 1989 |
| Answer» E. | |
| 692. |
In United States, the JPMorgan Chase is considered as |
| A. | largest foreign exchange trading |
| B. | smaller foreign exchange trading |
| C. | largest bond holder |
| D. | smaller bond holder |
| Answer» B. smaller foreign exchange trading | |
| 693. |
The type of financial security having payoffs which are connected to some securities issued some time back, is classified as |
| A. | linked security |
| B. | previous security |
| C. | payoff security |
| D. | derivative security |
| Answer» E. | |
| 694. |
The participants of financial system reduce the demand for their funds if the economic growth in |
| A. | domestic market is stagnant |
| B. | domestic market is not stagnant |
| C. | global market is stagnant |
| D. | global market is not stagnant |
| Answer» B. domestic market is not stagnant | |
| 695. |
The major liabilities of the commercial banks are |
| A. | junk bonds |
| B. | deposits |
| C. | loans |
| D. | swap bonds |
| Answer» C. loans | |
| 696. |
Gifts and reliefs are |
| A. | merchandise payments |
| B. | service payments |
| C. | factor income |
| D. | transfer payments |
| Answer» E. | |
| 697. |
If the equilibrium interest rate decreases with respect to decrease in interest rate, then the movement along the supply of funds curve is |
| A. | upside movement |
| B. | downside movement |
| C. | shift left |
| D. | shift right |
| Answer» C. shift left | |
| 698. |
The type of market in which securities with less than one year maturity are traded, is classified as |
| A. | money market |
| B. | capital market |
| C. | transaction market |
| D. | global market |
| Answer» B. capital market | |
| 699. |
The type of markets in which derivative securities are traded is classified as |
| A. | derivative security markets |
| B. | trading markets |
| C. | classified markets |
| D. | non-trading markets |
| Answer» B. trading markets | |
| 700. |
To create the situation with no shortage of funds, the relationship between funds supplied and the funds demanded must have |
| A. | Two way relationship |
| B. | One way relationship |
| C. | direct relationship |
| D. | inverse relationship |
| Answer» E. | |