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  • Question
  • Which best describes the difference between stocks and bonds?


  • Options
  • A. stocks allow investors to own a portion of the company; bonds are loans to the company
  • B. stocks are more reliable investment;bonds tend to be more volatile
  • C. stocks allow investors to share in profits;bonds make investors responsible for company debts
  • D. stocks pay interest to investors throughout the year; bonds only pay interest at fixed times during the year

  • Correct Answer
  • stocks are more reliable investment;bonds tend to be more volatile 

  • Tags: AIEEE, Bank Exams, CAT, GATE, Analyst, Bank Clerk, Bank PO

    Accounting and Finance problems


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    • 1. The balance of an account is determined by

    • Options
    • A. Sum of credits and debits
    • B. Difference of credits and debits
    • C. Product of credits and debits
    • D. None of the above
    • Discuss
    • 2. OMO refers to
    • Discuss
    • 3. Automatic stabilizers refer to

    • Options
    • A. government spending and taxes that automatically increase or decrease along with the business cycle.
    • B. changes in the money supply and interest rates that are intended to achieve macroeconomic policy objectives.
    • C. changes in federal taxes and purchases that are intended to achieve macroeconomic policy objectives.
    • D. the money supply and interest rates that automatically increase or decrease along with the business cycle.
    • Discuss
    • 4. Which of the following is a type of savings vehicle?

    • Options
    • A. Checking Account
    • B. Certificate of Deposit
    • C. Money Market Account
    • D. Both B & C
    • Discuss
    • 5. In recording an accounting transaction in a double-entry system

    • Options
    • A. there must always be entries made on both sides of the accounting equation.
    • B. the amount of the debits must equal the amount of the credits.
    • C. there must only be two accounts affected by any transaction.
    • D. the number of debit accounts must equal the number of credit accounts.
    • Discuss
    • 6. SIP full form is

    • Options
    • A. Sudden Investing Plan
    • B. Systematic Investment Plan
    • C. Savings Investmets Plan
    • D. None of the above
    • Discuss
    • 7. The interest-rate effect suggests that

    • Options
    • A. an increase in the price level will increase the demand for money, reduce interest rates, and decrease consumption and investment spending
    • B. an increase in the price level will increase the demand for money, increase interest rates, and decrease consumption and investment spending
    • C. a decrease in the supply of money will increase interest rates and reduce interest-sensitive consumption and investment spending
    • D. an increase in the price level will decrease the demand for money, reduce interest rates, and increase consumption and investment spending
    • Discuss
    • 8. A decline in the real interest rate will

    • Options
    • A. shift the investment schedule downward
    • B. shift the investment schedule leftward
    • C. increase the amount of investment spending
    • D. None of the above
    • Discuss
    • 9. Public policy tools involve a combination of

    • Options
    • A. equipment & penalties
    • B. incentives & equipment
    • C. penalties & incentives
    • D. All of the above
    • Discuss
    • 10. The internal rate of return is defined as the
    • Discuss


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