A. Advance deduction of the interest in purchasing, selling or lending a commercial paper
B. State (central) Bank’s interest rate on loans to its member banks
C. Both of them
D. None of them
Related Mcqs:
- Assume that commercial banks are holding excess reserves because business firms and consumers are not willing to borrow money A decrease in the discount rate is likely to ?
A. increase the money supply because it is now cheaper for banks to borrow from the central bank
B. decrease the money supply because it will now be more expensive for business firms and consumers to borrow money
C. Not change the money supply because banks already have excess reserves they cannot lend
D. Decrease the money supply because it is now cheaper for banks to borrow from the central bank instead instead of buying government securities - The type of trade promotion discount in which manufacturers agree to reduce the price to the retailer in exchange for the retailer’s agreement to feature the manufacturer’s products is some way is called a(n) ?
A. discount
B. allowance
C. premium
D. rebate - Suppose a project results in a net stream of $200 per year for 4 years, but nothing thereafter, Assume that the discount rate is 5 percent. The discounted value of the total income stream over the 4-year period is ?
A. 800
B. 40,000
C. more than zero but less than 800
D. less than zero - What is referred by interest ?
A. Payment made for the use of another person’s money
B. payment made for the use of bank’s money
C. Share in profit
D. Devaluation in the currency - Which of the following is referred by the phrase trade balance ?
A. Income from export
B. Difference between imports and exports
C. Income from imports
D. All of them - What is referred a group of companies that cooperate and share resources in order to achieve a common objective ?
A. Consortium
B. Pool
C. Incorporation
D. Conglomerate - Which of the following is referred by principle ?
A. Total amount of money being borrowed or lent
B. Party affected by agent decision in a principal agent relationship
C. Both of them
D. None of them - What is referred by cost push inflation ?
A. Decreased production costs drive prices up
B. Decreased production costs drive prices down
C. increased production costs drive prices down
D. increased production costs drive prices up - Which of the following is referred by the Debt retirement ?
A. To write-off debt
B. To reschedule debt
C. To repay debt in easy installments
D. The complete repayment of debt - What is referred by the term ‘Portfolio ?
A. A collection of investments, real or financial
B. Net assets of a company
C. Total profit of company in a year
D. Total unmovable assets of a company
