Direct investment and security purchases are classified as ?

Related Mcqs:

1. If GDP = Rs1,000 Consumption = Rs 600 taxes = Rs 100, and government purchases = Rs200, how much is saving and investment ?

   A. Saving = Rs 300 investment = Rs 300
   B. Saving = Rs 200 investment = Rs 100
   C. Saving = Rs 100 investment = Rs 200
   D. Saving = Rs 0 investment = Rs 0

2. When an increase in government purchases raises incomes shifts money demand to the right raises the interest rate, and lowers investment we have seen a demonstration of ?

   A. supply-side economics
   B. None of these answers
   C. The crowding-out effect
   D. The multiplier effects

3. How is termed the balance of investment and return; in which investment and return are exactly equal ?

   A. Break even
   B. Breakeven point
   C. Both of them
   D. None of them

4. Investment funds are established for the supports of institutions such as hospitals investment is called ?

   A. Charity funds
   B. Attached funds
   C. Endowment funds
   D. Investment fund

5. The difference between goes investment and net investment is ?

   A. Depreciation
   B. Acceleration
   C. Declaration
   D. Capital investment

6. The accelerator theory of investment says that induced investment is determined by ?

   A. the level of national income
   B. the level of aggregate demand
   C. the rate of change of national income
   D. expectations

7. The difference between gross investment and net investment is ?

   A. depreciation of the existing capital stock
   B. productive investment
   C. dwellings
   D. inventories

8. Which of the following is not an example of foreign direct investment ?

   A. the construction of a new auto assembly plant overseas
   B. the acquisition of an existing steel mill overseas
   C. the purchase of bonds or stock issued by a textile company overseas
   D. the creation of a wholly owned business firm overseas

9. A borrower gives to creditor a security to grantee repayment of a loan. What is this security called ?

   A. Pledge
   B. Assurance
   C. Collateral
   D. Guaranty

10. Purchases of government securities in the United States by foreigners is ?

    A. a credit item in the current account
    B. a debit item in the capital account
    C. a credit item in the capital account
    D. a debit item in the current account