Finance Questions & Answers

QUESTION 9 With reference to Question 8 above, the measure of money that will not be immediately affected by the above action by China's central bank is: a) M1 b) M2 c) M3 d) Quasi money

QUESTION 8 China's central bank Monday conducted a total of 10 billion yuan (about \( \$ 1.4 \) billion) of reverse repos to maintain liquidity in the banking system. The interest rate for the seven-day reverse repos was set at 2 percent, according to the People's Bank of China. The move aims to keep stable liquidity in the banking system, the central bank said. A reverse repo is a process in which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future." The area of responsibility that China's central bank is undertaking with the above decision is that of: a) Fiscal policy. b) Service to the government. c) Provision of economic and statistical services. d) Maintaining financial stability.

QUESTION 8 "China's central bank Monday conducted a total of 10 billion yuan (about \( \$ 1.4 \) billion) of reverse repos to maintain liquidity in the banking system. The interest rate for the seven-day reverse repos was set at 2 percent, according to the People's Bank of China. The move aims to keep stable liquidity in the banking system, the central bank said. A reverse repo is a process in which the central bank purchases securities from commercial banks through angreement to sell them back in the future." he area of responsibility that China's central bank is undertaking with the above decision is that of: Fiscal policy. Service to the government. rovision of economic and statistical services. aintaining financial stability.

QUESTION 7 Which one of the following is NOT a shoncoming of measuring the economy using gross domestic product (GDP)? a) Only goods and services with a market price are Included in the calculations. b) The gross domestic product (GDP) cannot account for the effect that inflation has on the economy. c) Activities in the informal sector are often not taken into account. d) An increase in expenditure from the perspective of the gross domestic product (GDP) often does not consider the economic welfare of such increases.

GDP would include which of the following? a) the value of taking a day off from work b) consulting services c) intermediate sales d) illegal drug sales

Real GDP is measured in ___ prices while nominal GDP is measured in ___ prices. a) foreign; domestic b) current year; base year c) domestic; foreign d) base year; current year

As an economic concept, scarcity applies to a) neither time nor money. b) both money and time. c) time but not money. d) money but not time.

Find out how long it takes a \( \$ 3,300 \) investment to double if it is invested at \( 9 \% \) compounded semiannually. Round to the nearest tenth of a year. Use the formula \( A=P\left(1+\frac{r}{n}\right)^{\text {nt }} \)

R25000 is deposited into an account which offers an interest rate of \( 9 \% \) p. compounded monthly. After 3 years, R6 850 is withdrawn from the accour How much will be in the account after 10 years?

Suppose you have \( \$ 12,000 \) to invest. Which of the two rates would yield the larger amount in 4 years: \( 9 \% \) compounded monthly or \( 8.86 \% \) compounded continvously?