Economics MCQs

Page No. 331

An increase in the prevailing interest rate ?


a increases the present value of future returns from investment and increases investment

✖


bdecreases the present value of future return from investment and decreases investment

✓


c decreases the present value of future returns from investment and increase investment

✖


d increases the present value of future returns from investment and decreases investment

✖



If a depositor puts Rs100 in a bank amount that earns 4 percent interest compounded annually, how much will be in the account after five years ?


aRs400.00

✖


bRs 104.00

✖


cRs 121.67

✓


d Rs 123.98

✖


View Answer Rs 121.67

It is difficult for an actively managed investment fund to outperform an index fund because ?


a stock markets tend to be inefficient

✖


ball of these answers

✖


cindex funds are able to buy undervalued stocks

✖


d actively managed funds trade more often and charge fees for their alleged expertise

✓



Share prices will follow a random walk if ?


ashares are overvalued

✖


bpeople behave irrationally when choosing shares

✖


cmarkets reflect all available information in a rational way

✓


dshares are undervalued

✖



Which of the following should cause the price of a share of stock to rise ?


a None of these answers

✖


bAn increase in expected dividends

✖


cA reduction in aggregate risk

✖


dAll of these answers

✓


View Answer All of these answers

If the efficient markets hypothesis is true, then ?


a shares tend to be overvalued

✖


bthe stock market is informationally efficient so share prices should follow a random walk

✓


c All of these answers

✖


d fundamental analysis is a valuable tool for increasing one’s returns from investing in shares

✖



Compared to a portfolio composed entirely of shares a portfolio that is 50 percent government bonds and 50 percent shares will have a ?


a lower return and a lower level or risk

✓


b lower return and a higher level of risk

✖


chigher return and a lower level or risk

✖


dhigher return and a higher level of risk

✖



Idiosyncratic risk is the ?


auncertainty associated with the entire economy

✖


b uncertainty associated with specific companies

✓


crisk associated with adverse selection

✖


drisk associated with moral hazard

✖



Which of the following does not help reduce the risk that people face ?


aincreasing the rate of return within their portfolio

✓


bdiversifying their portfolio

✖


cAll of these answers help reduce risk

✖


dbuying insurance

✖



If two countries start with the same real GDP/person and one country grows at 2 percent while the other grows at 4 percent ?


aone country will always have 2 percent more real GDP/person than the other

✖


b the standard of living in the country growing at 4 percent will start to accelerate away from the slower growing country due to compound growth

✓


cthe standard of living in the two countries will converge

✖


d Next year the country growing at 4 percent will have twice the GDP/person as the country growing at 2 percent

✖



Goto Page No.

Page 331 of 444

Alphabetical MCQs Categories
—

Here below You find all kind of categories of MCQs in alphabetical order.


"Comprehensive Collection of MCQs: Alphabetically Organized by Subject"
—

"Discover an extensive collection of multiple-choice questions (MCQs) neatly categorized by subject from A to Z. This resource is designed for anyone eager to explore various topics in a straightforward and organized manner. Whether you're a student preparing for exams, an educator seeking supplementary materials, or simply curious about different subjects, this compilation offers a convenient way to learn and assess your knowledge. With questions arranged alphabetically, navigation is effortless, allowing you to delve into subjects of interest at your own pace. Engage, learn, and expand your understanding with this accessible and comprehensive repository of MCQs!"


BolPakistan

bolpakistan.com.pk includes Job Mcqs and Pak Mcqs is the Top Largest Mcqs Forum in World, in which you can read Mcqs of All Subjects, PPSC test preparation, FPSC, NTS and PPSC PAST PAPERS, PPSC PAST MCQS. A Collection of Repeated MCQs for JOBs seekers.

Copyright © 2024, Designed & Developed by BolPakistan