Theory Of Income Distribution V Uppersixth Arts Economics

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Quiz on interest and loanable funds theory for upper sixth arts-economics.

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YAKILI LMS

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Theory Of Income Distribution V Uppersixth Arts Economics


Froggy Jumps Theory Of Income Distribution V Uppersixth Arts EconomicsVersion en ligne Quiz on interest and loanable funds theory for upper sixth arts-economics. par YAKILI LMS 1 What does 'interest' mean in finance? a Charge for borrowing money b Tax on income c Payment for saving money 2 Which term describes the cost of using someone else's money? a Principal b Interest c Dividend 3 Simple interest is calculated on what amount? a Total savings b Principal c Interest earned 4 Which form of interest accrues on both principal and interest? a Simple interest b Compound interest c Flat rate 5 If you borrow 100 at 5% interest, how much is the interest in one year? a 0 b 5 c 105 6 Interest rate is typically expressed as a % of what? a Interest b Total repayment c Principal 7 When interest increases, borrowing usually becomes... a Cheaper b Free c More expensive 8 Which variable does the 'time' component affect in simple interest? a Term of loan b Credit score c Collateral value 9 What is the loanable funds theory primarily about? a Prices of goods in markets b Demand and supply of loanable funds determine interest c Only government spending 10 In the loanable funds diagram, which axis typically shows real interest rate? a Back axis b Horizontal axis c Vertical axis 11 What does the loanable funds graph illustrate? a Supply of goods b Budget deficit c Equilibrium interest rate and quantity of funds 12 Who are typical suppliers in the loanable funds market? a Savers b Bank managers c Borrowers 13 Who are typical demanders in the loanable funds market? a Tax authorities b Borrowers c Savers 14 Which factor shifts the loanable funds demand curve leftward? a Increased savings b Decreased business confidence c Lower taxes 15 Which factor shifts the loanable funds supply curve rightward? a Declining population b Lower incomes c Higher income leading to more saving 16 Limitations of the loanable funds theory include... a Ignores savings b Assumes perfect capital mobility c Always describes fiscal policy 17 Which statement is true about loanable funds? a Saving reduces funds available b Only government borrows c Saving is a source of loanable funds 18 Not only businessmen demand loanable funds means... a Only banks borrow b Only lenders borrow c Other sectors borrow too 19 Does saving automatically lead to borrowing according to the lesson? a Yes b No c Sometimes yes 20 Does saving depend on the rate of interest for borrowing? a Never b Not necessarily c Always 21 What is the effect of a higher interest rate on investment? a Has no effect b Always increases investment c May reduce investment demand 22 Which factor can shift both demand and supply in loanable funds? a Tax policy only b Expectations about future rates c Weather conditions 23 What does 'equilibrium' mean in the loanable funds diagram? a Where supply is zero b Where demand is infinite c Where saving equals borrowing 24 A rise in productivity affects the loanable funds theory by... a Increasing future profits can raise demand for funds b Reducing saving c Reducing tax revenue 25 Which is a limitation of the theory? a Requires zero inflation b Assumes real interest rates adjust quickly c Ignores banks 26 What does 'demand for loanable funds' depend on besides interest rate? a Currency value b Birth rate c Business activity expectations 27 Which is true about loanable funds concept? a Interest is fixed by government b Investment has no role c Interest results from saving and investment interaction 28 What role do financial institutions play in loanable funds? a Facilitate saving and lending b Only borrow money c Set tax rates 29 Which factor is a demand shifter for loanable funds? a Expected profitability b Past interest rate c Current tax rate 30 What is the primary market for loanable funds? a Loanable funds market b Foreign exchange market c Commodity market 31 If real interest rate rises, what happens to borrowing? a Borrowing tends to fall b Unchanged c Borrowing rises 32 Which is a consequence of high interest rates? a No change b More saving, less borrowing c Less saving, more borrowing 33 What does the loanable funds diagram ignore in some cases? a Money demand from households b Labor supply c Trade balances 34 Which of the following is a source of loanable funds? a Public debt only b Exports c Private saving 35 What diagram component shows the price of funds? a Time axis b Quantity axis c Interest rate axis 36 What does the loanable funds theory help explain? a How to fix wages b How interest rates are determined c How to set taxes 37 Which statement is accurate about interest calculations? a Interest is fixed forever b Interest is always zero c Interest is a function of principal and rate 38 Which type of interest accrues on accumulated interest too? a Simple interest b Compound interest c Zero interest 39 Meaning of 'loanable funds'? a Money paid as tax b Funds kept in vaults c Funds available for borrowing and lending 40 Limitations include assuming which market characteristic? a No banks b Perfect competition c Monopoly power 41 Which factor can cause a shift in saving behavior? a Season b Income changes c Color of money 42 Are loans only taken by businessmen in this theory? a Only governments b Yes c No 43 What does 'demand for loanable funds' reflect? a Tax rates b Investment returns c Borrowing needs at given rates 44 Which would likely increase the demand for loanable funds? a Higher expected profits b Lower investment risk c Lower population 45 What happens if savings increase while investment stays the same? a Interest rate rises b No change in rate c Interest rate may fall 46 What is the focus of 'upper sixth arts economics' topics here? a Macroeconomic policy b Interest and loanable funds c Microeconomics 47 Which outcome is NOT a direct focus of loanable funds theory? a Interest rate determination b Tax incidence on consumers c Saving and investment link 48 Which component is essential in calculating interest? a Rate and principal b Collateral only c Time only 49 What is a simple way to describe 'macro financial market'? a Spot price of gold b Exchange rates only c Loanable funds and interest 50 Which graph feature marks market equilibrium? a End of axis b Peak of one curve c Intersection of curves

Theory Of Income Distribution V Uppersixth Arts Economics

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Theory Of Income Distribution V Uppersixth Arts EconomicsVersion en ligne

par YAKILI LMS

What does 'interest' mean in finance?

Which term describes the cost of using someone else's money?

Simple interest is calculated on what amount?

Which form of interest accrues on both principal and interest?

If you borrow 100 at 5% interest, how much is the interest in one year?

Interest rate is typically expressed as a % of what?

When interest increases, borrowing usually becomes...

Which variable does the 'time' component affect in simple interest?

What is the loanable funds theory primarily about?

In the loanable funds diagram, which axis typically shows real interest rate?

What does the loanable funds graph illustrate?

Who are typical suppliers in the loanable funds market?

Who are typical demanders in the loanable funds market?

Which factor shifts the loanable funds demand curve leftward?

Which factor shifts the loanable funds supply curve rightward?

Limitations of the loanable funds theory include...

Which statement is true about loanable funds?

Not only businessmen demand loanable funds means...

Does saving automatically lead to borrowing according to the lesson?

Does saving depend on the rate of interest for borrowing?

What is the effect of a higher interest rate on investment?

Which factor can shift both demand and supply in loanable funds?

What does 'equilibrium' mean in the loanable funds diagram?

A rise in productivity affects the loanable funds theory by...

Which is a limitation of the theory?

What does 'demand for loanable funds' depend on besides interest rate?

Which is true about loanable funds concept?

What role do financial institutions play in loanable funds?

Which factor is a demand shifter for loanable funds?

What is the primary market for loanable funds?

If real interest rate rises, what happens to borrowing?

Which is a consequence of high interest rates?

What does the loanable funds diagram ignore in some cases?

Which of the following is a source of loanable funds?

What diagram component shows the price of funds?

What does the loanable funds theory help explain?

Which statement is accurate about interest calculations?

Which type of interest accrues on accumulated interest too?

Meaning of 'loanable funds'?

Limitations include assuming which market characteristic?

Which factor can cause a shift in saving behavior?

Are loans only taken by businessmen in this theory?

What does 'demand for loanable funds' reflect?

Which would likely increase the demand for loanable funds?

What happens if savings increase while investment stays the same?

What is the focus of 'upper sixth arts economics' topics here?

Which outcome is NOT a direct focus of loanable funds theory?

Which component is essential in calculating interest?

What is a simple way to describe 'macro financial market'?

Which graph feature marks market equilibrium?