ICAP Introduction to economics and finance CAF 2 MCQs

Financial Markets MCQs | Economics

Financial markets exist to bring together lenders (investors) with borrowers (governments and companies).

The balance of payments (BOP) measures the financial transactions made between Consumers, Businesses and the government in one country with others.

Credit – A contractual agreement whereby a borrower receives something of value in the present, in exchange for payment in the future, generally

Monetary Policy Using a variety of techniques to influence the use of money and credit within an economy in order to meet certain objectives.

Money – An officially-issued legal tender used as a medium of exchange, usually through currency notes and coins.

Public finance – It studies the income and expenditure of the public authorities and deals with the adjustment therein.

Economic growth is a long-term expansion of a country’s production potential. Economic growth is seen as a more permanent increase in what output the

Multiplier effect – The number by which a change in investment must be multiplied to result in the final change of total output.