1. Gifts and inheritances over a certain value is liable to ..............

tax
A. Capital gains B. capital transfer
B. C. progressive D. indirect
2. .................. is not a short- term asset.
A. Cash reserves B. machinery
B. C. inventories B. funds from debtors
3. ............. ratio provides information on a company’s ability to manage its resources.
A. Liquidity B. profitability
C. activity D. return on investment
4. Financial analysis involves using the .............. data in a company’s statements.
A. figure B. numerical C. qualitative D. quantitative
5. A country can accrue wealth if it exports more than it imports. The sentence means:
A. This country has a balance of trade deficit thâm hụt cán cân thanh toán
B. Demand for this country’s currency will fall
C. This country receives money from countries which imports its products
D. All of the above
5. Companies wishing to raise more money for expansion can sometimes issue new shares
offered first to ................. shareholders at less than their market price.
A. company B. existing C. new D. major
6. If the ................. project is successful, all the benefits go to the stockholders, because
creditors’ returns are fixed at low-risk rates.
A. safe B. risky C. stock D. profit
7. Some countries have a(n) ................. in the import and export business due to their
location.
A. support B advantage C. benefit D. position
8. Their company is .............. because they have difficulty in making payments on its debt.
A. overleveraged B. debtor C. bankrupt D. overheating
9. Increasing debts increase financial risk: bond interest has to be paid even in a year
without any .................... .
A. loss B. profit C. share D. advantage
10.To reduce the money supply, Central banks sell Treasury bills to commercial banks and
withdraw the cash received from...................... .
A. circulating B. circulator C. circulation D. circulate
1. Which financial institution acts as a lender of last resort in a country's banking system?
A. Commercial banks
B. Investment banks
C. Development banks
D. Central banks
2. Interest rate swaps often___a fixed payment for a floating payment that is linked to an
interest rate.
A. Pay
B. Swap
C. Exchange
D. Change
3. What are the main forms of saving institutions ?
A. Mutual savings banks, savings and loans associations, saving department
in commercial banks.
B. Mutual savings banks, saving department in central banks, savings and
loans associations.
C. A and B also True
D. A and B also False
4. When the Central Bank reduces reserve requirements and buys more securities, the
employment rate will___and the inflation will___.
A. Increase/Increase
B. Increase/Decrease
C. Decrease/Increase
D. Increase/Decrease
5. From what type of deposits do depositors withdraw their money at any time ?
A. Savings deposits
B. Demand deposits
C. Time deposits
D. Fixed deposits
6. Banks create credit ________________.
A. Out of nothing
B. On the basis of their securities
C. On the basis of their total assets
D. On the basis of deposits
7. Which of the following is NOT a function of commercial bank?
A. Acceptance of deposit
B. Purchase and sale of foreign exchange
C. Discounting bills of exchange
D. Controlling Credit expansion
8. What do the banks do with the deposits which they accept from the customers?
A. Banks use these deposits for charitable activities.
B. Banks use a major portion of deposits to extend loans.
C. Banks use deposits to give bonuses to their employees.
D. Banks use deposits to set up more branches in the country.
9. Deposits in commercial banks can be ___________.
A. Saving bank deposit
B. Demand deposit
C. Fixed deposit
D. All of the above
10. Which of the following statements is true or false?
a) Commercial banks can issue currency notes
b) Commercial banks sell and purchase securities on behalf of their customers
A. (a) is false, but (b) is true
B. Both (a) and (b) are true
C. Both (a) and (b) are false
D. D.(a) is true, but (b) is false
1. The supply of a good is….related to the price of inputs used to make the good.
A. negatively B. positively C. significantly D. substantially
2. Interest rate swaps often……. A fixed payment for a floating payment that is linked to
an interest rate.
A. pay B. swap C. exchange D. change
3. Individuals and corporate entities can find it attractive to establish subsidiaries or move
themselves to…..to reduce taxation levels.
A. Tax havens B. tax avoidance C. other countries D. tax shelters
4. The standard …. For international trade and investment us the US dollar.
A. capital B. currency C. unit D. payment
5. When you keep deposit with bank
A. You are creditor of bank B. You are lender of bank
C. You are unit holder of bank D. You are debtor of bank
6. What are the two basic tools that the federal government uses to influence the economy
A. Entitlements and spending B. Entitlements and wages
C. Taxation and spending D. Taxation and wages
7. Money Market Funds invest in
A. Long term securities B. Equities C. Debentures
D. Short term interest bearing instruments like T-bills, CD's, Call
money
8. Interest rates are set by the Monetary Policy Committee of which ONE of the following
organizations
A. The Office of Fair Trading B. The Treasury
C. The Department of Trade and Industry D. The Bank of England
9. If the government spends more than it takes in, what is that called?
A. Balanced budget B. Budget deficit
C. Budget surplus D. Discretionary budget
10. What is the government doing when it issues bonds?
A. investing in the stock market
B. Paying the growing interest on the national debt
C. Borrowing money it will have to repay in the future
D. Encouraging foreigners to invest in this country