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QUESTION NO: 1
Central banks fulfill all of the following functions except which?
A. Provider of capital and liquidity to the government
B. Chief advisor to government on taxation policy
C. Holder of bank accounts on behalf of the commercial banks
D. Lender of liquidity to the commercial banks
Answer: B
QUESTION NO: 2
The main purpose of government competition policy is to
A. Restrict anti-competitive behavior by firms
B. Limit the ability of firms to secure long run excess profits
C. Prevent mergers between large companies
D. Enforce competition by breaking up large firms
Answer: A
QUESTION NO: 3
Which ONE of the following is regarded as a general characteristic of an organization?
A. Social goals towards society
B. Collective goals towards society
C. Controlled performance of its activities
D. Social arrangement of people
Answer: A
QUESTION NO: 4
In a recession which ONE of the following would be likely to experience the largest fall in demand for its products?
A. A motor insurance company
B. A toothpaste manufacturer
C. A chain of supermarket grocery stores
D. A manufacturer of industrial machine tools
Answer: D
QUESTION NO: 5
The managing director of Polly's, a department store, has found that ten of its stores located in the south east of England have seen a significant fall in profit margin.
Which of the following is most likely to be the cause of this?
A. An increase in footfall at these stores
B. An increase in rent for the premises in which the store is located
C. A decrease in rent for the premises in which the store is located
D. A decrease in sales at these stores
Answer: B
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Updated: May 28, 2022