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All of the following are functions of a central bank except one. Which ONE is the exception?

A.

Lender of the last resort

B.

Banker to the commercial banks

C.

The conduct of fiscal policy

D.

Regulation of the banking system

A financial intermediary takes the small deposits of millions of savers and uses them to buy an issue of government (treasury) bills and bonds.

Identify from the list below the principle this illustrates:

A.

Maturity transformation

B.

Aggregation

C.

Risk transformation

D.

Money transmission

All of the following are appropriate policies to deal with the problem of industries which cause pollution except which one?

A.

Taxes on the consumption of the product

B.

Subsidies to the producers

C.

The auctioning of pollution permits

D.

Legal controls to limit pollution levels

Lending to member states that are experiencing serious balance of payments problems is the role of:

A.

The World Bank

B.

The International Monetary Fund

C.

The G8 Group

D.

The World Trade Organization

All of the following are examples of not-for-profit organizations except one. Which ONE is the exception?

A.

Mutual savings societies

B.

Charities

C.

Partnerships

D.

Trade Unions

Who issues certificates of deposits?

A.

Taxation authorities

B.

Commercial banks

C.

Central banks

D.

Equity markets

Whenever a government provides health care services free of charge

A.

Economic welfare is maximized

B.

Government expenditure on the provision of public goods increases

C.

The incentive to provide private health care through the market disappears

D.

Provision of merit goods by the state is taking place

Which ONE of the following was NOT a consequence of the Global Banking Crisis that began in 2007?

A.

Recession in many developed countries

B.

Increased concern over ability of national governments to borrow

C.

A credit crunch

D.

High monetary inflation

A car dealer uses the following trend equation to estimate the number of cars sold each quarter

Y = 120 + 3t

Where y = number of cars sold each quarter and t = time period expressed in units

What is the forecasted number of cars sold in period 12. if there is an additive seasonal factor of 55?

A.

156

B.

101

C.

211

D.

139

A hairdressing salon can either invest in

1. New. more comfortable chairs at a cost of $5,000

2. New shop windows at a cost of $4,000

Over the next five years. Investment 1 will generate an additional amount of profit whose present value is $6,000. while Investment 2 additional amount of profit whose present value is $5,500

What is the net present value of the best project? Give your answer to the nearest whole dollar.