International Finance And Treasury - Study Mode

[#546] Loans for cars and home appliances is classified as loans for
Correct Answer

(A) durable goods

Explanation

Solution: Loans for cars and home appliances is classified as loans for durable goods. Durable goods are those goods that don't wear out quickly and last over a long period.

[#547] When business companies started investing with funds generated internally is a point which shows that
Correct Answer

(A) cost of loanable funds is high

Explanation

Solution: When business companies started investing with funds generated internally is a point which shows that cost of loanable funds is high. Loanable funds is the sum total of all the money people and entities in an economy have decided to save and lend out to borrowers as an investment rather than use for personal consumption.

[#548] Interest rate considering compounding of interest rate and is earned in 12 months is considered as
Correct Answer

(A) effective annual return

Explanation

Solution: Interest rate considering compounding of interest rate and is earned in 12 months is considered as effective annual return. Effective annual return (EAR) is the annual rate that captures the magnifying effect of multiple compounding periods per year of an investment.

[#549] Foreign currency forward market is
Correct Answer

(A) an over the counter unorganised market

[#550] Which of the following statement is true about foreign exchange market?
Correct Answer

(D) Both B and C