Economics MCQs

Page No. 407

Which statistical factor is used to convert current currency purchasing power into inflation adjusted purchasing power ?


a Deflector


bPurchasing power parity


cInflator


d Deflation


View Answer Deflector

Failure to make timely payment of interest or principal on a debt security or to otherwise comply with the provisions of a bound indenture is called ?


a Rolling debt


bBad debt


c Rescheduling


dDefault


View Answer Default

Which of the following is referred by the Debt retirement ?


a To write-off debt


b To reschedule debt


cTo repay debt in easy installments


d The complete repayment of debt



What is called that debt obligation backed strictly by the borrower’s integrity ?


aDebenture


bSecurities


c Credit rating


dNone of them


View Answer Debenture

An evaluation of an individual’s or company’s ability to obligations or its likelihood of not defaulting is known as ?


aCredibility


b Credit risk


cCredit credibility


dCredit rating


View Answer Credit risk

Developments in a national economy can affect the outcome of an international financial transaction. What this process is called ?International economic risk


aInternational economic risk


b Country economic risk


c Ultra-country economic risk


dOutcome risk



Which branch of accounting provides information to help the management of a firm evaluate production costs and efficiency ?


aEfficient Account


bCost Accounting


cUltra-country economic risk


dOutcome risk


View Answer Cost Accounting

What is called interest that is paid previously earned interest as well as on the principal ?


aGross interest


b Simple interest


cTotal interest


dCompound interest


View Answer Simple interest

Common market is an agreement between two or more countries. What this agreement permits ?


aFree movement of capital and labor


b Free movement of goods and services


cBoth of them


dNone of them


View Answer Both of them

Mention the market for trading long-term debt instruments ?


a Stock market


bOpen market


cCapital market


dInternational market


View Answer Capital market

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