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Viewing page 13 out of 14 pages
Viewing questions 121-130 out of questions
Questions # 121:

Which TWO of the following policy actions might be available to a government that wishes to reduce a deficit in the balance of payments?

Options:

A.

Devaluate the exchange rate in order to increase exports.

B.

Increase the money supply in order to stimulate domestic consumption.

C.

Appreciate the exchange rate in order to reduce imports.

D.

Reduce the interest rate in order to stimulate investment.

E.

Introduce tariffs on imported goods in order to favour domestic producers.

Questions # 122:

A forward exchange contract would be appropriate (or a company that

Options:

A.

is due to receive a payment denominated in foreign currency today

B.

is due to receive a large payment denominated in foreign currency in five months' time

C.

is worried that its products are becoming less competitive due to a general appreciation of the domestic currency over lime

D.

is expected to pay a substantial amount denominated in national currency to a foreign creditor m six months' time

Questions # 123:

Which THREE of the following processes are likely to occur during a recession?

Options:

A.

A fall in the gross domestic product of the economy

B.

An increase in the number of unemployed workers.

C.

A reduction in the amount of subsidies paid out by the government

D.

A worsening of the trade balance

E.

A fall in the government's tax income

F.

An increase in the interest rate

Questions # 124:

Which THREE of the following are characteristics of good information?

Options:

A.

Accuracy

B.

Confidentiality

C.

Verifiability

D.

Accessibility

E.

Trustworthiness

F.

Relevance

Questions # 125:

The following cash flows are for a capital project where the required rate of return is 8 percent

Question # 125

Calculate the NPV for the project. Give your answer to the nearest whole number

Options:

Questions # 126:

Company A uses the trend equation, y = a + bt, to forecast sales, where y are sales and t are time periods measured in units At time period zero, sales were $865,000 In period 5. sales have increased to $1.245.000 Calculate coefficient b (without any decimal points):

Options:

Questions # 127:

The following table provides the frequency distribution and cumulative frequencies of the cost of monthly rent for 120 apartments. What is the percentage of apartments whose monthly rent is less than $510?

Question # 127

Options:

A.

21%

B.

50%

C.

25%

D.

41%

Questions # 128:

Which of the following is NOT a possible objective of a charity?

Options:

A.

To fulfil its institutional mission in a cost-effective manner

B.

To provide services to its users

C.

To pay dividends to its shareholders

D.

To provide advice and guidance to its clients

Questions # 129:

Which TWO of the following business costs are directly affected by a rise in the interest rate*? D The cost of procuring equity finance

Options:

A.

The cost of complying with government regulations.

B.

The cost of borrowing from private lenders.

C.

The cost of accessing government subsidies

D.

The cost of procuring intermediate goods.

Questions # 130:

An investor has bought a financial asset that pays a variable interest rate at the end of a three-year period At the same time, the invest forward rate agreement (FRA) on an agreed forward rate of 3% at the asset's maturity. What is the advantage of the FRA?

Options:

A.

If the market interest rate at the asset's maturity is lower than 3%. the bank will pay the investor for the difference in rates

B.

If the market interest rate at the asset's maturity is lower than 3%. the asset's maturity will be extended for another year

C.

If the market interest rate at the asset's maturity is higher than 3%, the investor will have the option to drop the FRA upon payment

D.

If the market interest rate at the asset's maturity is higher than 3%, the investor will be able to receive the higher market rate

Viewing page 13 out of 14 pages
Viewing questions 121-130 out of questions
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