Credit risk refers to a bond’s ?

A. Probability of default
B. Price-earnings ratio
C. Dividend
D. Tax treatment

Which of the following financial market securities would probably pay the highest interest rate ?

A. A bond issued by a startup company
B. A government bond issued by the government of france.
C. A bond issued by a blue-chip company
D. An investment funds with portfolio of corporate bonds issued by blue chip companies

If Pakistani citizens become more thrifty we would expect ?

A. The supply of loanable funds in the pakistan loanable funds market to shift to the right and the real interest rate to fall.
B. The demand for loanable funds in the pakistan loanable funds market to shift to the right and the real interest rate to rise
C. The demand for loandable funds in the pakistan loanable funds market to shift to the right and the real interest rate to fall
D. The supply of loandable funds in the pakistan loanable funds market to shift to the right and the real interest rate to rise

An increase in the budget deficit that causes the government to increase its borrowing ?

A. Shifts the supply of loanable funds to the right
B. Shift the demand for loandbale funds to the left
C. Shift the demand for loanable funds to the right
D. Shift the supply of loanable funds to the left

A financial intermediary is a middleperson between ?

A. Buyers and sellers
B. Husbands and wives.
C. Borrowers and lenders.
D. Labor unions and firms

If GDP = Rs1,000 Consumption = Rs 600 taxes = Rs 100, and government purchases = Rs200, how much is saving and investment ?

A. Saving = rs 300 investment = rs 300
B. Saving = rs 200 investment = rs 100
C. Saving = rs 100 investment = rs 200
D. Saving = rs 0 investment = rs 0

Firms are assumed to ________ costs and to ________ profits?

A. Incur, desire
B. Pay, make
C. Charge earns
D. Minimize, maximize

Marginal revenue is the ________ when output is __________?

A. Change in average revenue, increased
B. Change in total revenue, increase by one unit
C. Change in average revenue, increased by one unit
D. Change in total revenue increased

An upward shift in marginal cost _____ output and an upward shift in marginal revenue ______ output?

A. Reduces; reduces
B. Reduces; increases
C. Increases; increases
D. Increases; reduces

A firm that makes profit in addition to normal profit is making ?

A. Economic profit
B. Accounting profit
C. Normal profit
D. Supernormal profit