When the financial system lacks the capability of making judgement about investment opportunities due to asymmetric information leading to potentially bad credit risks lending is subject to ?

Related Mcqs:

1. Which of the following factors potentially increased the vulnerability to the 1997 Asian financial and currency crisis ?

   A. trade account surplus
   B. massive reverse outflows of capital
   C. technological transfer from DCs
   D. Symmetric informational in financial market

2. Which of the following could not be described as an asymmetric macroeconomic shock ?

   A. None of these answers All of them are asymmetric macroeconomic shocks
   B. A sudden and substantial fall in the worldwide demand for French wine
   C. An epidemic of an animal disease in a country that significantly reduces the country’s agricultural output
   D. A sudden and substantial rise in prices on the world oil market

3. A reduction in interest rates, causes an increases in the monetary base that results in an _________ in the availability of consumer credit and a ________ in the cost of consumer credit?

   A. reduction, increase
   B. reduction, reduction
   C. increase, reduction
   D. increase , increase

4. Central bank’s rate of lending to commercial banks is called ?

   A. Interest rate
   B. Discount rate
   C. Money rate
   D. Control rate

5. Barro and Lee find that ceteris paribus, IMF lending has ?

   A. negative effect on economic growth during the simultaneous five-year period but has a significantly positive effect on growth in the subsequent five years
   B. no effect on economic growth during the simultaneous five-year period but has a significantly negative effect on growth in the subsequent five years
   C. a significantly positive effect on growth in the subsequent five years
   D. an exponentially negative effect on growth ten years

6. Riskless transactions to take advantage of profit opportunities due to a price differential or a yield differential in excess of transaction costs are called ?

   A. differential actions
   B. cash transaction
   C. arbitrage
   D. forward transactions

7. How is termed the balance of investment and return; in which investment and return are exactly equal ?

   A. Break even
   B. Breakeven point
   C. Both of them
   D. None of them

8. Investment funds are established for the supports of institutions such as hospitals investment is called ?

   A. Charity funds
   B. Attached funds
   C. Endowment funds
   D. Investment fund

9. The difference between goes investment and net investment is ?

   A. Depreciation
   B. Acceleration
   C. Declaration
   D. Capital investment

10. The difference between gross investment and net investment is ?

    A. depreciation of the existing capital stock
    B. productive investment
    C. dwellings
    D. inventories