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BA1 Exam Dumps - Fundamentals of Business Economics

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Question # 65

Whenever a government provides health care services free of charge

A.

Economic welfare is maximized

B.

Government expenditure on the provision of public goods increases

C.

The incentive to provide private health care through the market disappears

D.

Provision of merit goods by the state is taking place

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Question # 66

Which ONE of the following financial instruments is NOT issued for long term borrowing by the issuer?

A.

Treasury bills

B.

Equities

C.

Treasury bonds

D.

Mortgages

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Question # 67

All of the following are functions of a central bank except one. Which ONE is the exception?

A.

Lender of the last resort

B.

Banker to the commercial banks

C.

The conduct of fiscal policy

D.

Regulation of the banking system

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Question # 68

What is described by the following definition 'the total accumulated amount the state owes to lenders in its own country and internationally'?

A.

The national debt

B.

The fiscal deficit

C.

The balance of payments deficit

D.

The structural deficit

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Question # 69

When central banks adopt a policy of 'quantitative easing' this means that they:

A.

Lift quantitative restrictions on bank lending

B.

Lower the capital adequacy requirements for banks

C.

Buy government bonds from the banks

D.

Ease the liquidity ratios banks need to hold

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Question # 70

Which of the functions of a financial intermediary is described by the following statement 'converts a flow of short-term deposits into a supply of long term loans'?

A.

Aggregation

B.

Risk management

C.

Maturity transformation

D.

Introducing borrows and lenders

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