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QUESTION NO: 1
Which of the following is most likely to lead to a rise in the exchange rate of country's currency and a fall in the price of stocks shares?
A. An increase in the country's money supply
B. An increase in the deficit in the country's balance of payments on current account
C. Foreign investors purchasing shares on the country's capital markets
D. An increase in rates of interest within the country
Answer: D

QUESTION NO: 2
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

QUESTION NO: 3
If central bankers wished to agree and implement new measures to assure the security of global banks, which ONE of the following bodies would they use?
A. The WTO
B. The IMF
C. The World Bank
D. The G20
Answer: D

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
Which ONE of the following is NOT an example of a long term financial need?
A. The financing of house purchase through a mortgage
B. Private saving to finance a pension
C. The need for working capital in small businesses
D. The financing of business investment
Answer: C

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Updated: May 28, 2022