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

Related Mcqs:

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

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

2. Countries with chronic balance of payments deficits eventually need to borrow abroad often from the ________ as the lender of last resort?

   A. U.S
   B. OECD
   C. IMF
   D. OPEC

3. 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

4. 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

5. 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

6. ________ 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

7. Differences in wages that result from differences in working conditions are known as ?

   A. occupational differentials
   B. search differentials
   C. job differentials.
   D. compensating differentials

8. 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

9. Which of the following statements best describes the outcome under monopolistic competition ?

   A. It is efficient because the right amount of output is produced, but not efficient in that the output produced is produced at a cost above minimum average total cost
   B. It is efficient because entry is free and economic profits are eliminated in the long run.
   C. It is not efficient because too little output is produced and the output that is produced is produced at a cost above minimum average total cost
   D. It is not efficient because too little output is produced but is efficient in that the output produced is produced at minimum average total cost.

10. Which of the following countries has highest percentage of land under cultivation ?

    A. USA
    B. India
    C. China
    D. Canada