Economics MCQs

Page No. 407

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


a Deflector

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bPurchasing power parity

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cInflator

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d Deflation

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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

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bBad debt

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c Rescheduling

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dDefault

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View Answer Default

Which of the following is referred by the Debt retirement ?


a To write-off debt

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b To reschedule debt

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cTo repay debt in easy installments

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d The complete repayment of debt

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


aDebenture

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bSecurities

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c Credit rating

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dNone of them

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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

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b Credit risk

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cCredit credibility

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dCredit rating

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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

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b Country economic risk

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c Ultra-country economic risk

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dOutcome risk

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


aEfficient Account

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bCost Accounting

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cUltra-country economic risk

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dOutcome risk

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View Answer Cost Accounting

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


aGross interest

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b Simple interest

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cTotal interest

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dCompound interest

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View Answer Simple interest

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


aFree movement of capital and labor

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b Free movement of goods and services

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cBoth of them

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dNone of them

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View Answer Both of them

Mention the market for trading long-term debt instruments ?


a Stock market

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bOpen market

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cCapital market

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dInternational market

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View Answer Capital market

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