Loanable Funds in FMI Multiple Choice Questions with Answers – PDF Download

MCQ 1: The special provisions that can have adverse or beneficial effects and are reflected in interest rates do not include:

1. tax-ability
2. covert ability
3. call ability
4. inflation premium

MCQ 2: The factors that can affect nominal interest rates in financial transactions include:

1. special provisions
2. liquidity and default risk
3. inflation and real interest arte
4. all of the above

MCQ 3: The participants of financial system reduce the demand for their funds if the economic growth in:

1. domestic market is stagnant
2. domestic market is not stagnant
3. global market is stagnant
4. global market is not stagnant

MCQ 4: The curve representing demand of the funds shifts to the left if economic growth in:

1. global market is stagnant
2. global market is not stagnant
3. domestic market is stagnant
4. domestic market is not stagnant

MCQ 5: The shift of demand curve to down and then to the left resulting in:

1. support from World Bank
2. decreases in funds traded
3. increase in funds traded
4. rise of international funds