A. Shares
B. Debentures and bonds
C. Commercial paper
D. Government securities
Related Mcqs:
- 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 - All of the following are credit items in the balance of payments except ?
A. investment inflows
B. merchandise exports
C. payments for American services to foreigners
D. private gives to foreign residents - what is called an evaluation of credit quality of a company’s debt issued by Moody’s S&P and Fitch investors services ?
A. Credit worthiness
B. Credit Worth
C. Credit line
D. Ratings - The power of a bank to create credit is affected by ?
A. The cash reserve requirement
B. The amount of cash available
C. The number of branches of a bank
D. A and B of above - When a commercial bank creates credit its immediate effect is that it raises__________________?
A. The exchange rates
B. The interest rates
C. The money supplies
D. The real national income - Credit (-) items in the balance of payments correspond to anything that ?
A. involves receipts from foreigners
B. involves payments to foreigners
C. increases the domestic money supply
D. decreases the demand for foreign exchange - Credit (+) items in the balance of payments correspond to anything that ?
A. involves receipts from foreigners
B. involves payments to foreigners
C. increases the domestic money supply
D. decreases the demand for foreign exchange - When all of the debit or credit items in the balance of payments are combined ?
A. merchandise imports equal merchandise exports
B. capital imports equal capital exports
C. services exports equal services imports
D. the total surplus or deficit equals zero - Credit risk refers to a bond’s ?
A. Probability of default
B. Price-earnings ratio
C. dividend
D. tax treatment - 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 ?
A. adverse selection
B. moral hazard
C. social goods
D. hyperinflation
