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Viewing page 9 out of 14 pages
Viewing questions 81-90 out of questions
Questions # 81:

In a given economy of every $1 of additional income:

$0.68 is spent on consumption of domestically produced goods

$0.13 is spent on imported goods

$0.15 is taxed by government

What is the value of the multiplier in this economy?

Options:

A.

0.04

B.

1.47

C.

3.03

D.

3.125

Questions # 82:

Which of the functions of a financial intermediary is described by the following statement 'Bundles small deposits of liquidity into larger loans'?

Options:

A.

Aggregation

B.

Risk management

C.

Maturity transformation

D.

Introducing borrows and lenders

Questions # 83:

Other things remaining equal, which one of the following is likely to increase as a result of the sale by the central bank of a large quantity of government bonds?

Options:

A.

The quantity of money

B.

The yield of government bonds

C.

The liquid reserves of banks

D.

The price of government bonds

Questions # 84:

The euro currency market is

Options:

A.

Markets within the European Union where foreign currencies are bought and sold.

B.

The market for the single European currency, the euro.

C.

The market for bank deposits denominated in a currency other than that of the country where the bank is located.

D.

The market for bank deposits which can be switched into any other currency at 24 hours notice.

Questions # 85:

DigiRecords is an international retailer of CDs and DVDs. It has, however, started selling BluRoy players and discs.

Which of the following may have had an impact on DigiRecords' decision to begin selling BluRay players and discs?

Options:

A.

The increase in demand for BluRay and the subsequent decrease in demand for DVDs

B.

The inexpensive nature ofBluRays compared with DVDs

C.

A decrease in the number ofBluRays being sold

D.

An increase in the number of DVDs being sold

Questions # 86:

Beth wants to take out an annuity in order to be able to leave more money to her children when she passes away. She has looked at three annuities with different payout rates.

Annuity A pays out £5340 each year over 14 years

Annuity B pays out £4900 each year over 9 years

Annuity C pays out £5445.64 each year over 20 years

The current interest rate is 8%.

Of these, which annuity would have the highest net present value and hence pay out more money for Beth over its lifetime?

Options:

A.

£53,460.10

B.

£44,024.23

C.

£30,609.75

D.

£60,455.63

Questions # 87:

The component bar chart displaying sales revenues for different types of product sold by Pills Pharmaceuticals shows that the poorest performing products are its medical devices.

Question # 87

Which of the following may be reasons for this?

Select ALL that apply.

Options:

A.

The company does not specialise in selling medical devices to hospitals

B.

The company has only recently started to develop and sell medical devices and equipment

C.

The company may be winding up its development and distribution of medical devices and equipment

D.

The company may be facing a public relations crisis which is turning away members of the public who would

E.

otherwise be interested in buying these products

F.

The company may be involved in a standards dispute in terms of over-inflated prices for its medical devices

Questions # 88:

Which of the following will NOT affect the price elasticity of supply?

Options:

A.

The time period considered.

B.

Production costs.

C.

The level of stocks.

D.

Proportion of income spent.

Questions # 89:

Company X's government has seen the the balance of payments deficit steadily rising while they have been in power.

Which of the following would be a good policy to implement to counteract this?

Options:

A.

Decrease the interest rates across the whole economy to limit foreign investment

B.

Reduce bureaucracy by removing quotas and obligations for imported goods

C.

Increase the rate of income tax by 10% in each bracket

D.

Increase the rate of interest in the economy by 5%

Questions # 90:

Which of the following are reasons why the principal-agent problem is so critical for businesses? Select ALL that apply.

Options:

A.

It limits the control of one layer of management over another

B.

It can lead to dubious managerial practices within the company

C.

It leads to higher profits which ultimately benefit a business

D.

Higher sales means the business will perform well regardless of managerial practice

E.

Co-ordination needs to be good in order for multiple layers of management to function well

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Viewing questions 81-90 out of questions
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