Life insurance companies contribute to economic development by holding a part of their assets in?
A. Long-term financial instruments B. Equipment C. Cash and near money D. Money-market instruments Correct Answer: Option A – Long-term financial instruments
In the circular flow of income model; the outflow variables represent?
A. Income B. Expenditure C. Injections D. Leakages Correct Answer: Option D – Leakages Explanation The outflow of income from the CFI is called leakages. Leakages take the form of: Savings Taxes...
Corrections in the GNP figures for price changes require the use of a?
A. Retail price index B. Producer price index C. Price index D. Price deflator Correct Answer: Option D – Price deflator
A reduction in the bank rate encourages commercial banks to create money by?
A. Decreasing the interest rate B. maintaining the interest rate C. Doubling the interest rate D. Raising the interest Correct Answer: Option B – maintaining the interest rateProducts
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