Under Which of the following conditions would you prefer to be the borrower ?

Related Mcqs:

1. Under which of the following conditions would you prefer to be the lender ?

   A. The nominal rate of interest is 15 percent and the inflation rate is 14 percent
   B. The nominal rate of interest is 20 percent and the inflation rate is 25 percent
   C. The nominal rate of interest is 12 percent and the inflation rate is 9 percent
   D. The nominal rate of interest is 5 percent and the inflation rate are 1 percent

2. 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

3. What is called that debt obligation backed strictly by the borrower’s integrity ?

   A. Debenture
   B. Securities
   C. Credit rating
   D. None of them

4. Bank loans are usually altered to have longer maturities in order to assist the borrower in making the necessary repayments. What these loans are called____________?

   A. Rearranged loans
   B. Rescheduled loans
   C. Altered loans
   D. None of these

5. An agreement between a borrower country and the International Monetary Fund in which the country agrees to revamp its economic policies to provide incentives for higher export earnings and lower imports is a ?

   A. debt rescheduling agreement
   B. debt service agreement
   C. program for growth
   D. stabilization program

6. Central banks prefer to fix the ____ and accept the resulting _____?

   A. demand for money, interest rate
   B. interest rate equilibrium money supply
   C. demand for money equilibrium money supply
   D. interest rate, demand for money

7. Because supply and demand conditions for primary products are very price inelastic their prices ?

   A. have been steadily rising in recent decades
   B. have been more stable than the prices of manufactured goods
   C. fluctuate about as much as the prices of manufactured goods
   D. tend to be very unstable from year to year

8. Initial conditions in the year before the crisis in Thailand Indonesia Malaysia the Philippines and Korea in 1997 indicate that ?

   i. capital inflows/GDP were very low
   ii. Nonperforming bank loan ratios were high
   iii. current account deficits were high
   iv. credit growth was fast

   A. I and IV only
   B. II and III only
   C. I, II and III only
   D. II, III and IV only

9. ________ occurs when a firm disposes on foreign markets a temporary increases in inventories caused by unforeseen changes in supply and demand conditions in the home economy?

   A. sporadic dumping
   B. predatory dumping
   C. persistent dumping
   D. foreign dumping

10. In Porter’s five force model conditions are more favorable for firms within an industry if ?

    A. Buyer power is high
    B. Supplier power is high
    C. Entry threat is low
    D. Substitute threat is high