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Fundamentals of Business Economics Questions and Answers

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Question 1

The central bank can increase liquidity in the banking system, by:

Options:

selling government bonds and lowering interest rates

selling government bonds and raising interest rates

buying government bonds and raising interest rates

buying government bonds and lowering interest rates

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Question 2

What is described by the following definition 'the total accumulated amount the state owes to lenders in its own country and internationally'?

Options:

The national debt

The fiscal deficit

The balance of payments deficit

The structural deficit

Question 3

Which ONE of the following would make the market supply of a product price elastic?

Options:

Suppliers are unable to store unsold product

Firms can join the industry easily

Demand is price elastic

There is a shortage of resources to make the product

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BA1 Exam Dumps : Fundamentals of Business Economics

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Fundamentals of Business Economics Questions and Answers

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