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- Question
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
- Correct Answer
- increase the amount of investment spending
ExplanationThe real interest rate is the percentage increase in purchasing power that the lender receives on a loan. A decline in the real interest rate will increase the amount of investment spending.
- 1. 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
- 2. SIP full form is
Options- A. Sudden Investing Plan
- B. Systematic Investment Plan
- C. Savings Investmets Plan
- D. None of the above Discuss
- 3. 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 Discuss
- 4. 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
- 5. OMO refers to Discuss
- 6. Public policy tools involve a combination of
Options- A. equipment & penalties
- B. incentives & equipment
- C. penalties & incentives
- D. All of the above Discuss
- 7. The internal rate of return is defined as the Discuss
- 8. Which of the following most impacts your credit score?
Options- A. Payment History
- B. Paying off your credit card bill
- C. credit card bill due
- D. All of the above Discuss
- 9. Smart money is a term used for
Options- A. Credit cards
- B. Cash with bank
- C. Cash with public
- D. Internet banking Discuss
- 10. On what basis currency value depends?
Options- A. inflation
- B. employment
- C. imports and exports
- D. All of the above Discuss
Accounting and Finance problems
Search Results
Correct Answer: an increase in the price level will increase the demand for money, increase interest rates, and decrease consumption and investment spending
Explanation:
The interest-rate effect suggests that an increase in the price level will increase the demand for money, increase interest rates, and decrease consumption and investment spending.
Correct Answer: Systematic Investment Plan
Explanation:
SIP is Systematic Investment Plan.
Correct Answer: stocks are more reliable investment;bonds tend to be more volatile
Correct Answer: Difference of credits and debits
Explanation:
The balance of an account is determined by the difference of credits amount and debits amount in the sheet.
Correct Answer: Open Market Operations (OMO) refer to the buying and selling of government securities in the open market in order to expand or contract the amount of money in the banking system
Correct Answer: penalties & incentives
Correct Answer: The Internal Rate of Return (IRR) is defined as the measure of an investment?s rate of return It is also called the discounted cash flow rate of return
Correct Answer: Paying off your credit card bill
Explanation:
Paying off your credit card bill most impacts your credit score.
Correct Answer: Credit cards
Explanation:
Smart money is a term used for credit card.
Correct Answer: All of the above
Explanation:
In economy, the currency value depends on imports and exports, inflation, employment, interest rates, growth rate, trade deficit, performance of equity markets, foreign exchange reserves, macroeconomic policies, foreign investment inflows, banking capital, commodity prices.
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