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BA1 PDF DEMO:

QUESTION NO: 1
Which of the following best describes the term 'National Debt'?
A. Money the government owes to governments of other countries
B. The accumulated borrowings by the government in previous years that have not yet been repaid
C. Money the government must borrow to make up the shortfall between tax revenue and government expenditures
D. Special assets issued by government to finance wars
Answer: B

QUESTION NO: 2
Which of the following describes a 'spot rate' in foreign currency dealing?
A. It is a short term rate that may change in the immediate future
B. It is the exchange rate minus the inflation rate
C. It is the price for a currency that is to be delivered immediately
D. It is the exchange rate minus any commissions or transactions charges
Answer: C

QUESTION NO: 3
Conflict between the objectives of shareholders and those of management in a company may anse because
A. managers are concerned with the level of profits but shareholders are only interested in the long term share price
B. raising the pay of management may be incompatible with increasing shareholder value.
C. managers are more concerned with day to day management than shareholders
D. shareholders are always interested in the short term but those in management are interested in the long term
Answer: C

QUESTION NO: 4
During recessions many governments borrow to give them funds to increase government expenditure on job creation schemes. They then repay the borrowed funds during the boom phase. This is an example of which of the following?
A. Funding
B. Aggregation
C. Medium term borrowing
D. Open market operations
Answer: C

QUESTION NO: 5
All of the following are characteristics of a recession except which one?
A. Rising levels of unemployment.
B. Improving trade balances.
C. Increased government budget deficits.
D. Increased inflationary pressure.
Answer: D

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Updated: May 28, 2022