A company’s ability to pay its debts is measured by:
A. solvency tests.
B. profitability tests.
C. profitability ratio.
D. liquidity ratio.
Ans: D. liquidity ratio.
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Assuming all else equal, any change that causes an increase in the credit supply at a given real interest rate will cause:
A) the credit supply curve to shift to the left. B) a downward movement along the credit supply curve. C) an upward movement along the credit supply curve. D) the credit supply curve to shift to the right.
Suppose you buy two tickets to the concert; one for you and one for your girlfriend. Nevertheless, the day of the concert your car brakes down preventing both of you from attending it. Assuming both you and your girlfriend had the same preferences, which of the two of you stand to lose the most from not being able to attend the concert?
A. Both of you stand to lose the same. B. Your girlfriend. C. You. D. None of you would stand to lose anything.
If this is a closed economy, how many bikes will be produced?
A. 80,000 B. 50,000 C. 100,000 D. 20,000
Which of the following statements is true?
A. Demand-pull inflation is caused by insufficient total spending. B. Cost-push inflation is caused by an increase in resource costs. C. If nominal interest rates remain the same and the inflation rate rises, real interest rates increase. D. If real interest rates are positive, lenders incur losses.