If a depositor puts Rs100 in a bank amount that earns 4 percent interest compounded annually, how much will be in the account after five years ?

Related Mcqs:

1. For the United States suppose the annual interest rate on government securities equals 8 percent while the annual inflation rate equals 4 percent, For Switzerland the annual interest rate on government securities equal 10 percent while the annual inflation rate equals 7 percent the above variables would cause investment funds to flow from ?

   A. the United States to Switzerland causing the dollar to depreciate
   B. the United States to Switzerland causing the dollar to appreciate
   C. Switzerland to the United States causing the franc to depreciate
   D. Switzerland to the United States causing the franc to appreciate

2. For the United States suppose the annual interest rate on government securities equals 12 percent while the annual inflation rate equals 8 percent For Japan the annual interest rate on government securities equals 10 percent while the annual inflation rate equals 5 percent the above variables would cause investment funds to flow from ?

   A. The United States to Japan causing the dollar to depreciate
   B. The United States to Japan causing the dollar to appreciate
   C. The Japan to United States, causing the dollar to depreciate
   D. The Japan to United States, causing the dollar to appreciate

3. Suppose the State Bank purchases a Rs 1,000 government bond from you. If you deposit the entire Rs 1,000 in you bank what is the total potential change in the money supply as a result of the State Bank’s action if the your bank’s reserve ratio is 20 percent ?

   A. Rs 4,000
   B. Rs 5,000
   C. Rs 1,000
   D. Rs 0

4. If inflation is 8 percent and the real interest rate is 3 percent, then the nominal interest rate must be ?

   A. 3/8 percent
   B. 5 percent
   C. 11 percent
   D. 24 percent

5. If the nominal interest rate is 7 percent and the inflation rate is 3 percent, then the real interest rate is ?

   A. 4 percent
   B. 10 percent
   C. -4 percent
   D. 3 percent
   E. 21 percent

6. If the sacrifice ratio is five, a reduction in inflation from 7 percent to 3 percent would require ?

   A. a reduction in output of 20 percent
   B. a reduction in output of 5percent
   C. a reduction in output of 15 percent
   D. a reduction in output of 35 percent

7. Suppose that 40 percent of the voting population wish to spent Rs1,000 for artwork in City Hall, 25 percent wish to spent Rs20,000 and 35 percent wish to spend Rs 22,000 What is the median preferred outcome, the average preferred outcome and the modal preferred outcome ?

   A. Rs20,000; Rs20,000; Rs22,000
   B. Rs1,000; Rs14,333; Rs1,000
   C. Rs20,000; Rs13,100; Rs1,000
   D. Rs1,000; Rs20,000; Rs22,000

8. Bance Solida has, in the past, always operated with a reserve ratio of 25 percent. It has now been taken over by Gung-Ho Bank Which operates with a reserve ration of 12½ percent, Assuming that Banca Solida adopts the business practices of its new owner, What will be the effect on money supply in the country in which Banca Solida operates ?

   A. Money supply will increase because Banca Solida will increase its loans
   B. The effect on money supply cannot be determined from the information given
   C. Money supply will decrease because the loans will have to be repaid
   D. Money supply will be unchanged because the central bank has made no policy changes

9. Suppose Imtiaz moves his Rs1,000 demand deposit from Bank A to Bank B. If both banks operate with a reserve ratio of 10 percent What is the potential change in money supply as a result of Gerard’s action ?

   A. Rs 10,00
   B. Rs 1,000
   C. Rs 9,000
   D. Rs 0

10. For the Central bank to keep the interest rat unchanged as the government increase spending, the Central Bank must continue to ?

    A. decrease the money supply
    B. increase the money supply
    C. increase the demand for money
    D. decrease the demand for money