Funds which flow into a country to take advantage of favourable rates of interest in that country is called (1) Cold Money (2)Black Money (3) Hot Money (4) White Money

1 Answer

Answer :

Hot Money

Related questions

Description : Funs which flow into a country to take advantage of favorable rates of interest in that country is called - (1) Cold Money (2) Black Money (3) Hot Money (4) White Money

Last Answer : (3) Hot Money Explanation: Hot money is a term that is most commonly used in financial markets to refer to the flow of funds (or capital) from one country to another in order to earn a ... hot money" because they can move very quickly in and out of markets, potentially leading to market instability.

Description : What is/are the characteristics of Hot Money ? A. The term is used for fresh currency notes issued by RBI B. It is the fund which inflows in the market to take advantage of high interest rates C. It ... in the market to create imbalance in the stock markets D. All of the Above E. None of the Above

Last Answer : B. It is the fund which inflows in the market to take advantage of high interest rates Explanation: Hot money is currency that moves regularly, and quickly, between financial markets so investors ensure they are getting the highest short-term interest rates available.

Description : Cheap money means - (1) Low rates of interest (2) Low level of saving (3) Low level of income (4) Low level of standard of livtrig

Last Answer : (1) Low rates of interest Explanation: Cheap money is a loan or credit with a low interest rate, or the setting of low interest rates by a central bank like the Federal Reserve. ... funds, CDs and bonds. Cheap money can have detrimental economic consequences as borrowers take on excessive leverage.

Description : 10. An increase in the money supply will cause interest rates to a. rise b. fall c. remain unchanged

Last Answer : b. fall

Description : A favourable Balance of Trade of a country implies that (1) Imports are greater than Exports (2) Exports are greater than Imports (3) Both Imports and Exports are equal (4) Rising Imports and Falling Exports

Last Answer :  Exports are greater than Imports

Description : What happens when the Fed cuts interest rates?

Last Answer : answer:Lower federal interest rates make it easier-that is, less risky and burdensome-for large businesses, especially private banks, to borrow money from the federal government. This in turn ... of cheap consumables. For more information, try: http://en.wikipedia.org/wiki/Federal_Reserve_System

Description : Do you think the Fed did the right thing by lowering interest rates ?

Last Answer : answer:http://www.lewrockwell.com/paul/paul166.html The Folly of Fed Interest Rates by Rep. Ron Paul, MD March 18, 2004 The Federal Reserve, acting through its rate-setting Federal Open Market ... private banking, where interest rates are set by the free market and dollars are backed by gold.

Description : Based on current data, would you lower the interest rates?

Last Answer : The interest rate is set by the Federal Reserve Members and is based on the supply and demand of Federal Reserve Notes on hand, in this cases the differance between the DEBT and CREDIT in Their ... the Big money boys and the Politicians)! Read the archives in www.worldreports.org. Hope this helps

Description : Crowding out means that a. a government budget deficit lowers interest rates and causes investment spending to rise b. an increase in marginal tax rates lowers production c. a government ... spending to fall d. a government budget deficit raises American exports and lowers American imports

Last Answer : c. a government budget deficit raises interest rates and causes investment spending to fall

Description : 10. Crowding out means that a. a government budget deficit lowers interest rates and causes investment spending to rise b. an increase in marginal tax rates lowers production c. a ... investment spending to fall d. a government budget deficit raises American exports and lowers American imports

Last Answer : c. a government budget deficit raises interest rates and causes investment spending to fall

Description : .An increases in investment is most likely to be caused by (a) Lower interest rates (b) Expectations of lower national incomes © A decrease in the marginal propensity to consume (d) An increase in withdrawals.

Last Answer : (a) Lower interest rates

Description : An increase in interest rates (a) is likely to reduce savings (b) is likely to reduce external value of currency © Leads to a shift in the MEC schedule (d) Leads to a movement along MEC schedule.

Last Answer : (d) Leads to a movement along MEC schedule

Description : An increase in investment is caused by (a) Lower interest rates (b) Expectations of lower national income © A decrease in the marginal propensity to consume (d) An increase in withdrawals

Last Answer : (a) Lower interest rates

Description : Lower interest rates are likely to (a) Decrease consumption. (b) Increase cost of borrowing. © Encourage saving. (d) Increase borrowing and spending.

Last Answer : (d) Increase borrowing and spending.

Description : The process by which the central bank of a country controls the supply of money in the economy by exercising its control over interest rates in order to maintain price stability and achieve high economic ... A. Economic Policy B. Monetary Policy C. Fiscal Policy D. Credit Policy E. Budgetary Policy

Last Answer : B. Monetary Policy Explanation: Monetary Policy is the process by which monetary authority of a country, generally a central bank controls the supply of money in the economy by exercising its control over ... Bank of India (RBI). is so designed as to maintain the price stability in the economy.

Description : Cheap Money means - (1) Low Rate of Interest (2) Low level of Savings (3) Low level Income (4) Excess of Black Money

Last Answer : (1) Low Rate of Interest Explanation: Cheap Money' is a loan or credit with a low interest rate, or the setting of low interest rates by a central bank like the Federal Reserve. Cheap money ... see the same low interest rates on investments like savings accounts, money market funds, CDs and bonds.

Description : For hannelizing the unaccounted money for productive purposes the Government Introduced the scheme of : (1) Special Bearer Bonds (2) Resurgent. India Bonds (3) Provident Funds (4) Market Loans

Last Answer : (1) Special Bearer Bonds Explanation: The Special Bearer Bonds (Immunities And Exemptions) Act, 1981 laid down the purpose of such bonds as necessary to canalize for productive purposes black money which has ... to issue at par certain bearer bonds to be known as the Special Bearer Bonds, 1991.

Description : 3. Which of the following is a NOT component of M-2? a. small time deposits b. money market mutual funds c. stocks d. checkable deposits

Last Answer : c. stocks

Description : For channelising the unaccounted money for productive purposes the Government Introduced the scheme of : (1) Special Bearer Bonds (2) Resurgent India Bonds (3) Provident Funds (4) Market Loans

Last Answer :  Special Bearer Bonds

Description : Sub-prime lending refers to ________ A. lending done by banks at rates below PLR B. Funds raised by the banks at sub-libor rates C. Group of banks which are not rated as ... institutions including banks to customers not meeting with normally required credit appraisal standards E. All of the Above

Last Answer : D. lending done by financing institutions including banks to customers not meeting with normally required credit appraisal standards Explanation: In finance, subprime lending (also referred to ... schedule, sometimes reflecting setbacks, such as unemployment, divorce, medical emergencies, etc.

Description : What type of pricing objective might an organisation set if it was already in a favourable financial position and desired nothing more? A)Return on investment B)Cash flow C)Profit D)Status quo E)Survival

Last Answer : D)Status quo

Description : Which of the following is not an advantage of weeds? a. A Controls Soil Erosion b. B Expedites water flow in irrigation canals c. C Maintain Soil Fertility d. D Used as fodder

Last Answer : b. B Expedites water flow in irrigation canals

Description : What is the lending of money at interest rates higher than the legal limits called?

Last Answer : What is the answer ?

Description : Which treatment is given to the germinated seed iIn vernilization process ? a. Hot water treatment b. Cold treatment c. Oven dry treatment d. None of these

Last Answer : b. Cold treatment

Description : Which treatment is given to the germinated seed iIn vernilization process ? a. Hot water treatment b. Cold treatment c. Oven dry treatment d. None of these

Last Answer : b. Cold treatment

Description : Take Advantage of Low Mortgage Rates?

Last Answer : Mortgage rates are at an all-time low, and now that prices havenearly reached bottom, it is time to start thinking about buying ahome or taking out a second mortgage on your existing home ... are falling, as theeconomy begins to recover, your investment in a new piece ofproperty can literally tur

Description : 5. An IOU of the Federal Reserve Bank of San Francisco to Bank of America is called: a. discounts b. federal funds c. reserves d. collateral

Last Answer : c. reserves

Description : Where do you suggest putting some cash in the US for interest yield but without the risk of stocks, mutual funds or ETF?

Last Answer : To start I would save $5,000 in a high interest savings account. To at least one years worth of savings for an emergency account. Before you start playing on the stock market. Low yield savings bonds are good . Only buy stocks if you can afford to lose that investment. I am not a financial expert.

Description : If he Central Bank wants to encourage an increase in the supply of money and decrease in the cost of borrowing money, it should - (1) lower cash reserve ratio (2) raise discount rates (3) sell government securities (4) All of the above

Last Answer : (1) lower cash reserve ratio Explanation: When the Central Bank of a country intends to increase money supply, it should lower the Cash Reserve Ratio. A decrease in CRR helps the commercial banks to ... the amount of Bank deposits and they will lend more as they have more amount as their reserve.

Description : If the Central Bank wants to encourage an increase in the supply of money and decrease in the cost of borrowing money, it should (1) lower cash reserve ratio (2) raise discount rates (3) sell government securities (4) All of the above

Last Answer :  lower cash reserve ratio

Description : A high Statutory Liquidity Ratio (SLR) (1) restricts lending (2) increases supply of cash (3) provides funds to the state (4) increases the strength of the banks

Last Answer : (1) restricts lending Explanation: Statutory Liquidity Ratio refers to the amount that the commercial banks require to maintain in the form gold or government approved securities before providing credit to ... , suck liquidity in the market, to tighten the measure to safeguard the customers' money.

Description : Longterm funds in the capital, market can be raised either by borrowing from certain institutions or through - (1) issue of note (2) taking loan from Government (3) issue of securities (4) taking loan from foreign institutions

Last Answer : (3) issue of securities Explanation: Capital markets provide for the buying and selling of long term debt or equity backed securities. When they work well, the capital markets channel the wealth of ... to raise long-term funds by providing a market for securities, both through debt and equity.

Description : Capital market deals with - (1) Short term fund (2) Long term fund (3) Cash (4) Both long and short term funds

Last Answer : (2) Long term fund Explanation: Capital markets are financial markets for the buying and selling of long-term debt or equity-backed securities. These markets channel the wealth of savers to those ... put it to long-term productive use, such as companies or governments making long-term investments.

Description : A high Statutory Liquidity Ratio (SLR) (1) restricts lending (2) increases supply of cash (3) provides funds to the state (4) increases the strength of the banks 

Last Answer : restricts lending 

Description : Capital market deals with (1) Short term fund (2) Long term fund (3) Cash (4) Both long and short term funds 

Last Answer : Long term fund

Description : Long-term funds in the capital market can be raised either by borrowing from certain institutions or through (1) issue of note (2) taking loan from Government (3) issue of securities (4) taking loan from foreign institutions

Last Answer :  issue of securities

Description : India provides ideal conditions for air travel because (a) it is a vast country (b) it has a huge population (c) its climatic conditions are favourable (d) it has extensive mountain tracks

Last Answer : Ans: (c)

Description : The main advantage of specialization results from (a) The economies of large scale production (b) The specializing country behaves like a monopoly © Smaller production runs resulting in lower unit costs. (d) High wages paid to foreign workers.

Last Answer : (a) The economies of large scale production

Description : Comparative advantage occurs when (a) A country can produce more goods than anyone else (b) A country has a lower opportunity cost in the production of a good than any other country © A country has more product lines than other countries (d) The exchange rate appreciates.

Last Answer : (b) A country has a lower opportunity cost in the production of a good than any other country

Description : ” If a country enjoys an absolute advantage in the production of all commodities then also trade is possible”. Who said this? (a) Adam Smith (b) David Ricardo © J.S Mill (d) None of them.

Last Answer : (b) David Ricardo

Description : According to the theory of Absolute Advantage a country should specialize in the production of that commodity in which she enjoys----- (a) absolute advantage (b) comparative advantage (c) no advantage (d) utilization.

Last Answer : (a) absolute advantage

Description : Assertion: Black soils are black in colour due to diffusion of iron in crystalline and metamorphic rocks. Reason: They develop deep cracks during hot weather Options: (a) Both A and R are true and R is the correct explanation of ... of A.(c) A is true but B is false. (d) A is false but R is true.

Last Answer : (d) A is false but R is true.

Description : How does geothermal energy flow from hot to cold or cold to hot?

Last Answer : When the weather is cold, the water or refrigerant heats up as it travels through the part of the loop that's buried underground.

Description : How does geothermal energy flow of thermal energy from hot to cold or cold to hot?

Last Answer : When the weather is cold, the water or refrigerant heats up as it travels through the part of the loop that's buried underground. Once it gets back above ground, the warmed water or refrigerant transfers heat into the building. The water or refrigerant cools down after its heat is transferred.

Description : In a parallel flow heat exchanger, if the outlet temperature of hot and cold fluids are the same, then the log mean temperature difference (LMTD) is (A) Minimum (B) Maximum (C) Zero (D) Infinity

Last Answer : (C) Zero

Description : Pick out the wrong statement. (A) The controlling resistance in case of heating of air by condensing steam is in the air film (B) The log mean temperature difference (LMTD) for ... a pure fluid at a given pressure from liquid to vapor or vice-versa occurs at saturation temperature

Last Answer : (C) In case of a 1 - 2 shell and tube heat exchanger, the LMTD correction factor value increases sharply, when a temperature cross occurs

Description : LMTD for counter-flow and parallel flow heat exchanger will be the same, when the (A) Cold fluid is heated to a certain temperature by condensing steam (isothermal fluid) (B) Outlet temperature of ... temperature of hot fluid is less than the outlet temperature of the cold fluid (D) None of these

Last Answer : (A) Cold fluid is heated to a certain temperature by condensing steam (isothermal fluid)

Description : In case of parallel flow heat exchanger, the lowest temperature theoretically attainable by the hot fluid is __________ the outlet temperature of the cold fluid. (A) Equal to (B) More than (C) Less than (D) Either more or less than (depending upon the fluid)

Last Answer : (A) Equal to

Description : Parallel straight line pattern of temperature distribution for both hot and cold fluids is observed in case of heat exchanger of the type (A) Parallel flow with equal heat capacities (B) Counter ... (C) Counter flow with unequal heat capacities (D) Parallel flow with unequal heat capacities

Last Answer : (B) Counter flow with equal heat capacities

Description : In a counter flow heat exchanger, hot fluid enters at 170°C & leaves at 150°C, while the cold fluid enters at 50°C & leaves at 70°C. The arithmetic mean temperature difference in this case is __________ °C. (A) 20 (B) 60 (C) 120 (D) ∞

Last Answer : (D) ∞