Interest that is calculated as a simple percentage of the original principal amount is called ?

Related Mcqs:

1. What is called interest that is paid previously earned interest as well as on the principal ?

   A. Gross interest
   B. Simple interest
   C. Total interest
   D. Compound interest

2. What is called interest payments plus repayments of principal to creditors ?

   A. Debt retirement
   B. Debt relief
   C. Debt service
   D. Payback

3. Failure to make timely payment of interest or principal on a debt security or to otherwise comply with the provisions of a bound indenture is called ?

   A. Rolling debt
   B. Bad debt
   C. Rescheduling
   D. Default

4. Interest payments and any principal repayments which are due on a country’s external debt are known as ?

   A. Debt Payment
   B. Service Charges
   C. Debt Charges
   D. Debt service

5. By which process the holder of a mortgage seizes the property of a homeowner who has not made interest and or principal payments on time as stipulated in the mortgage contract ?

   A. Foreclosure
   B. Default
   C. Bankrupt
   D. None of these

6. One percentage decrease in unemployment is associated with two percentage points of additional growth in real gdp is called?

   A. Okun’s Law
   B. classical theory
   C. Consumer price index
   D. none of the above

   Submitted by: Maneesh Kumar

7. The amount value of an asset in business records is not necessarily identical to the amount that the asset could bring on the open market. What is it called ?

   A. Open value
   B. Book value
   C. Real value
   D. Artificial value

8. What is called the centers around the ability of a national economy to generate enough interests and principal on its foreign debt ?

   A. National economic risk
   B. Country economic risk
   C. Country finance risk
   D. Foreign exchange risk

9. The motive for holding money that encourages investors to hold bonds when interest rates are low, with the hope of selling them when interest rates are high, is the ?

   A. Transactions motive
   B. precautionary motive
   C. profit motive
   D. speculation motive

10. 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