which of the following are correct:
1. most of the governments run unbalanced budgets
2. in a balance budget there could be budget surplus but no budget deficit
which are correct:
1. in basing point price system, a differential price is fixed
2. it differentiates among the customers on the basis of their locations
what is bubble in terms of share market
the "govt bonds" which have no maturity and are tradable on the floors of the stock exchanges are known as
which statement is correct regarding "debt swap"
which are correct regarding "derivatives"
1. derivatives are instruments of raising capital
2. they may have fixed assets as their collaterals
which are correct regarding "mutual fund"
1. the promoter of this fund is known as the sponsor
2. trustees of the fund are appointed by the sponsor
3. sponsors and the trustees as a team are responsible to the investors
which are correct regarding "junk bonds"
1. it is a short-term lending
2. it is usually risk-free
3. it is primarily retail-lending
4. it is short-term lending at low interest rates
the goods whose demand increases as income of the people increases are
which are correct regarding "preference shares" in India
1. they are shares which bear a stated dividend
2. they get priority over equity shares
3. such shares can be issued for a period of less than 1 year
what is "high street banking"?
"Efficient Market Theory"
1. share market is efficient; that is why next price move cannot be predicted
2. investors in share market cannot consistently outperform the market
which are correct?
1. "product swap" functions just opposite to the system of barter
2. "currency swap" is a mode of hedging against exchange rate fluctuations
3. "subsidy swap" is a method cross-subsidising two products
the dangers of over-exploitation of resources due to lack of property rights over them refers to
an economy whose income is increasingly generated from intellectual capital rather than physical materials is known as
after effects of inflation
1. investment in the economy falls
2. saving and tax collections first increase than fall
3. earnings on export increase while domestic currency depreciates
the following statements are major symptoms of:
1. lower inflation with low aggregate demand
2. unemployment rate increasing steadily
3. voluntary labour cuts by industries
periodic publications from IMF related to its function of surveillance:
1. World Economic Outlook
2. World Development Report
3. International Capital Markets
4. Global Financial Report
modern economics defines tax as
if all the banks in an economy are nationalised and converted into a monopoly bank
1. deposits will decrease in the new bank
2. deposits will increase in the new bank
3. there will be no effect on either saving rate or lending