International Finance And Treasury - Study Mode
[#271] If demand of loanable demands increases then borrowing cost of funds is
Correct Answer
(A) higher
Explanation
Solution: If demand of loanable demands increases then borrowing cost of funds is higher. The demand for loanable funds represents the behavior of borrowers and the quantity of loans demanded. The lower the interest rate, the less expensive it is to borrow.
[#272] In financial markets, decrease in investment results in
Correct Answer
(A) increase in interest rate
Explanation
Solution: In financial markets, decrease in investment results in increase in interest rate. An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited or borrowed.
[#273] Value which converts series of equal payments in to value received at beginning of investment is classified as
Correct Answer
(C) present value of annuity
Explanation
Solution: Value which converts series of equal payments in to value received at beginning of investment is classified as present value of annuity. An annuity is a financial product that pays out a fixed stream of payments to an individual. Annuities exist first in an accumulation phase, whereby investors fund the product with either a lump-sum or periodic payments.
[#274] Curve representing demand of funds shifts to left if economic growth in
Correct Answer
(C) domestic market is stagnant
Explanation
Solution: Curve representing demand of funds shifts to left if economic growth in domestic market is stagnant. The demand curve is a representation of the correlation between the price of a good or service and the amount demanded for a period of time.
[#275] The EXIM policy 2002-2007 coincides with the:
Correct Answer
(C) 9th Five year plan
Explanation
Solution: The EXIM policy 2002-2007 coincides with the 9th Five year plan seeks to consolidate the gains of the previous export-import policies and has set for itself a challenging target to achieve 1 percent to share in global trade by 2007.