MGT401 Final Term Past Paper 2009

Rana Abubakar Khan

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JOIN FB GROUP FOR VU HELP · FINALTERM EXAMINATION · Fall 2009 · MGT411- Money & Banking (Session - 3) · Time: 120 min Marks: 87

Q1. If more students didn't pay back their student loans then which of the following statement would imply? (1 marks)

1. Student loans may become more difficult to obtain
2. The interest rate on student loans would increase
3. Fewer people may attend college
4. All of the given options

Correct answer: The interest rate on student loans would increase

Q2. Price of 100 goods under the barter system would be _________. (1 marks)

1. 5050
2. 19800
3. 4950
4. 20200

Correct answer: 19800

Q3. Recently M2 and M3 have become: (1 marks)

1. A less useful measure of the relationship between the money supply and inflation
2. The money supply, the Federal Reserve pays the most attention to, in conducting monetary policy
3. Less useful than M1 due to new substitutes for standard checking account
4. The slowest growing of all of the money aggregates

Correct answer: A less useful measure of the relationship between the money supply and inflation

Q4. Economic research shows: (1 marks)

1. There is a strong inverse correlation between financial market development and economic growth
2. There is weak relation between financial market development and economic growth around 0.25
3. There is a relatively strong positive correlation between financial market development and economic growth
4. There isn't any correlation between financial market development and economic growth

Correct answer: There is a relatively strong positive correlation between financial market development and economic growth

Q5. Considering the value of a financial instrument, the longer the time until the promised payment is made: (1 marks)

1. The less valuable is the promise to make it since time is valuable
2. The greater the risk, therefore the promise has greater value
3. The more valuable is the promise to make it
4. It has no effect on the value of instrument

Correct answer: The less valuable is the promise to make it since time is valuable

Q6. market allowed networks of dealers that are connected electronically? (1 marks)

1. New York Stock Exchange
2. NASDAQ
3. Large exchanges in London
4. Large exchanges in Tokyo

Correct answer: NASDAQ

Q7. Bonds that are issued by Government are called _________. (1 marks)

1. Government bonds
2. Treasury bonds
3. Corporate bonds
4. Callable bonds

Correct answer: Treasury bonds

Q8. Asma deposits funds into a CD account at her bank. The CD account has an annual interest of 4.0%. If Asma leaves the funds in the CD account for entire two years she will have $1081.60. What amount is Asma depositing? (1 marks)

1. $960.60
2. $900.00
3. $1005.00
4. $1000.00

Correct answer: $960.60