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This set of Financial Markets and Institutions Multiple Choice Questions & Answers (MCQs) focuses on Financial Markets And Institutions Set 5

Q1 | If interest rates rise, the present value of any future earnings is bound to:
Q2 | In the loanable fund’s theory of interest determination, an increase in the productivity ofcapital equipment should lead to:
Q3 | If savers decide to save more, ceteris paribus, the loanable funds theory predicts:
Q4 | According to the Fisher hypothesis, the nominal rate of interest consists of:
Q5 | According to the liquidity preference theory of interest, an increase in uncertainty, otherthings being equal, will:
Q6 | The ability of central banks to influence short-term interest rates rests upon:
Q7 | A central bank which sets the short-term rate of interest must:
Q8 | According to --------- theory of interest, the rate of Interest is the price of credit which isdetermined by the demand and supply for loanable funds.
Q9 | According to ------- theory interest arises on account of the productivity of capital.
Q10 | The Time- Preference Theory of Interest was expounded by-----------
Q11 | ----------- defined Interest as “an index of the community’s preference for a dollar ofpresent over a dollar of future income.”
Q12 | According to ---------- theory, Interest is the reward for the productive use of the capital which is equal to the marginal productivity of physical capital.
Q13 | Loanable Fund theory is also known as-----------
Q14 | Neo- Classical theory of interest was expounded by------------
Q15 | According to Keynes, Interest is purely a ‘monetary phenomenon’.
Q16 | Who propounded liquidity preference theory of interest?
Q17 | ----------- is called as “Real Theory of Interest”
Q18 | Technical consultancy Organisations were set up by........................
Q19 | ICICI was set up in ........................
Q20 | ........................ assists mainly to industrial undertakings in the private sector
Q21 | LIC was established in........................
Q22 | UTI was set up in the year ........................
Q23 | ................known as Brettonwood twins
Q24 | World bank is also known as........................
Q25 | World bank was set up in ........................