Government borrows in the form of promissory note to repay the bearer after some fixed days from the date of issue. How is called such borrowing ?

Related Mcqs:

1. What is called when government spending overwhelms government revenue resulting in government borrowing ?

   A. Budget deficit
   B. Deficient financing
   C. Unbalanced spending
   D. Deficit spending

2. Bank issued a document that authorizes the bearer to receive money from one of its foreign branches or from another bank abroad. What such document is called ?

   A. letter of Credit
   B. Letter of expression
   C. Demand draft
   D. Letter of intent

3. Bearer cheque is ?

   A. Payable to anyone
   B. payable to person holding it
   C. payable through account only
   D. payable after specific period

4. An increase in the budget deficit that causes the government to increase its borrowing ?

   A. Shifts the supply of loanable funds to the right
   B. Shift the demand for loandbale funds to the left
   C. Shift the demand for loanable funds to the right
   D. Shift the supply of loanable funds to the left

5. What is called the result of a state’s borrowing from its population, from foreign governments or from international institutions ?

   A. National debt
   B. Public debt
   C. Both of them
   D. None of them

6. What can a central bank increase in order to reduce consumer borrowing ?

   A. commercial bank deposits
   B. government bank deposits
   C. government spending
   D. interest rates
   E. None of these

7. The essential feature of a _______ is that it immediately fixed the rate at which a specified amount of one currency is to be delivered in exchange for a specific amount of another at a future date ?

   A. forward contract
   B. spot contract
   C. money contract
   D. bid contract

8. Which of the following may constitute the International Monetary Fund’s conditionality for borrowing?

   I. government reducing budget deficts
   II. limiting credit creation and liberalizing trade
   III. achieving market-clearing price
   IV. restraining public sector employment and wage rates

   A. I and II only
   B. III and IV only
   C. I, II , III and IV
   D. None of these

9. Peer borrowing groups of five or so people with joit liability approve loans to other members as a substitute for the bank’s screening process The above statement applies to ?

   A. Indonesia’s Badan Kredit Kecamatan (BKK)
   B. the Association for Development of Microenterprice
   C. Bangladesh’s Grameen Bank
   D. the Enterprice credit program in Kolkata

10. Minimum price of a commodity fixed by government to save the interest of producer of raw materials is called ?

    A. Floor price
    B. Fixed price
    C. Bid Price
    D. Basic Price