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26. Which of the following is/are among the elements of fiscal policy?
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27. Which TWO of the following statements are correct?
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28. A government has adopted a contractionary fiscal policy. How would this typically affect businesses?
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29. A government follows an expansionary monetary policy. How would this typically affect businesses?
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30. As the economy booms and approaches the limits of productivity at a point in time, are the following statements a true or false description of the impact of this?
A. Increased inflation (higher sales prices and higher costs), difficulty in finding suitable candidates to fill roles and higher interest rates.
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B. High export demand, increasing growth rates, high inflation and high interest rates.
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C. Reducing inflation, falling demand, reducing investment, increasing unemployment.
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D. Higher government spending, lower tax rates, high inflation and low unemployment.
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31. The principal objectives of macroeconomic policy include which of the following?
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32. Governments have a number of economic targets as part of their fiscal policy. Which of the following government actions relate predominantly to fiscal policy?
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33. Which of the following organisations is most likely to benefit from a period of high price inflation?
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34. Indicate which of the following statements correctly describe the functions that financial intermediaries fulfil for customers and borrowers.
A. Maturity transformation
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B. Fund aggregation
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C. Dividend creation
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D. Pooling of losses
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35. Which THREE of the following are key roles played by money markets?
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36. Which THREE of the following are common roles of the treasury function within a firm?
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37. Which of the following is a difference between primary and secondary capital markets?
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38. What role would the money market have in a letter of credit arrangement?
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39 .KM plc, a company listed in the UK and Australia, decides to issue unsecured US dollar bonds in Australia. Which of the following is the correct definition for these bonds?
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40. Rank the following from highest risk to lowest risk from the investor’s perspective.
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41. Are the following statements true or false?
A. Financial markets can be classified into exchange and over-the-counter markets
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B. Capital market securities are assets for the seller but liabilities for the buyer
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C. A secondary market is where securities are bought and sold by investors
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42. Which of the following statements relating to money markets is/are true?
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43. There are two main types of financial market: capital and money markets, and within each of these are primary and secondary markets.
Which TWO of the following statements are true?
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44. If the US dollar weakens against the pound sterling, will UK exporters and importers suffer or benefit?
A. UK exporters to US
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B. UK importers from US
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45. If a government has a macroeconomic policy objective of expanding the overall level of economic activity, which TWO of the following measures would be consistent with such an objective?
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46. Which of the following statements is correct?
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47. Which of the following is least likely to be a reason for seeking a stock market listing?
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48. Indicate, by clicking in the relevant boxes, whether the following statements are true or false.
A. A prospective merger would need to result in a company having a market share greater than 80% before it can be described as a monopoly
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B. A government may intervene to weaken its country’s exchange rate in order to eliminate a balance of payments deficit
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C. A relatively high rate of domestic inflation will lead to a strengthening currency
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D. Government fiscal policy involves the management of interest rates
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