Commerical and Central banks
In a country where all commercial banks maintain a cash reserve ratio of 20%, a new deposit of $50 million is made in the banking system. What is the total potential increase in the money supply, including the initial deposit?
a) $200 million
b) $250 million
c) $300 million
d) $400 million
B) $250million
Financial mathematical techniques How much will an investor have after 5 years if they invest $5,000 at 12% simple interest per annum? (Give your answer as a whole number, with no decimal places.)
$8000
The exchange rate (spot rate) for the Euro against the US dollar is currently €1: $1.1152. However, dealers in the foreign exchange markets expect the spot rate in 3 months' time to be €1: $1.0977. Based on this information, the Euro is expected to: a)Depreciate by 1.57% against the US dollar over the next 3 months
b)Depreciate by 1.59% against the US dollar over the next 3 months
c)Appreciate by 1.57% against the US dollar over the next 3 months
d)Appreciate by 1.59% against the US dollar over the next 3 months
a)Depreciate by 1.57% against the US dollar over the next 3 months
Which of the following statements are true? Big data analytics allows businesses to analyse and reveal insights in data which they have previously been unable to analyse. In order for organisations to analyse big data and to gain insights from it, the source data needs to be struetured within a software package. One of the key features of big data is the speed with which data flows into an organisation, and with which it is processed.
a)1 and 2 only
b)1 and 3 only
c)2 and 3 only
d)1, 2 and 3
b)1 and 3 only
A company analyses the time series of its quarterly sales using a multiplicative model. factor of 0.97. Based on its data analysis from previous years, the company has identified that Quarter 3 has a seasonal Seasonally adjusted figures for Quarter 3 in the current year were $47.92 million. What were the actual sales for Quarter 3 in the current year?
@46.48
Which of the following correctly identifies the three main aims of a commercial bank?
a) Aggregation, Liquidity, Security
b) Liquidity, Profitability, Responsibility
c) Liquidity, Profitability, Security
d) Profitability, Responsibility, Security
C) Liquidity, Profitability, Security
$10,000 is invested now at a nominal interest rate of 12% with interest compounded monthly. To the nearest $, what is the value of the investment at the end of the second year?
a $12,000
b $12,400
c $12,544
d $12,697
d $12,697
Which of the following are true of forward contracts? 1 They fix the rate for a future transaction.
2 They are a binding contract.
3 They are flexible once agreed.
4 They are traded openly.
1 and 2
Which of the following correcty describes the difference between data and information?
a)Data is quantitative and information is qualitative. b)Data is information that has been processed. c)Information is data that has been processed. d)Data is qualitative and information is quantitative.
c)Information is data that has been processed.
Which of the following scenarios best illustrates the concept of the residual component in a time series model?
a)A long-term increase in a company's production costs of 2% per year
b)An increase in unemployment figures caused by a global recession over the past two years
c)The impact on sales of a fire which destroyed part of a company's warehouse and the inventory in it
d)An increase in visitor numbers of a tourist destination during the main holiday season
c)The impact on sales of a fire which destroyed part of a company's warehouse and the inventory in it
If all the commercial banks in a national economy maintain a cash reserve ratio of 25%, how much new cash must be deposited in the banks for the total money supply to increase by $400 million, excluding the initial deposit?
a) $800 million
b) $100 million
c) $1600 million
d) $200 million
B) $100 million
Company A invests $600,000 now with compound interest at 5% but at the end of year 3 withdraws $100,000. The remainder of the investment is invested for another two years at 2%. What is the value of the remaining investment at the end of year 5? (to the nearest $100)
618600(618596)
Which TWO of the following are true in relation to futures contracts, in comparison to forward contracts?
a)They are more expensive.
b)They are only available in a small amount of currencies.
c)They are less flexible.
d)They may be an imprecise match for the underlying transaction.
b)They are only available in a small amount of currencies.
d)They may be an imprecise match for the underlying transaction.
Region Average salary
1) South-East (21500)
2)Midlands(20800)
3)North-East(18200)
4)North-West(17500)
5)South-West(16700)
Which of the following will be the most appropriate type of diagram to draw to illustrate the regional differences in average salary?
A simple bar chart
Which of the following are necessary if forecasts obtained from a time series analysis are to be reliable?
1 The trend must not be increasing or decreasing.
2The trend must continue as in the past.
3Extrapolation must not be used.
4The same pattern of seasonal variation will continue as in the past.
2The trend must continue as in the past.
4The same pattern of seasonal variation will continue as in the past.
Which of the following statements about quantitative easing (QE) are true?
Quantitative easing involves the central bank injecting large amounts of money into the economy to try to stimulate aggregate demand.
In the process of quantitative easing, a central bank creates new money electronically and uses it to buy financial assets, such as government bonds.
a) Neither of them
b) Statement 1 only
c) Statement 2 only
d) Both of them
D) both of them
A company is about to sign a new lease for a new fleet of delivery vehicles. The first lease payment of $70,000 is to be made immediately with further lease payments of the same amount to be made annualy. The present value of the cost of the lease, using a discount rate of 10%, has been calculated as $374,850. How many lease payments will there be?
7
Sten Co is based in a Eurozone country, but sells large quantities of its product in the UK, where the sales price is quoted in £. Last month, the exchange rate between the Euro and the & was €1: 20.8, and the selling price of Sten's product in the UK was £400. The exchange rate between Euro and £ has now changed to €1: 20.85. Assuming the sales price in the UK changes in line with movements in the exchange rate, what will the price of Sten's product be in the UK now (to the nearest &)?
425
Data has been analysed to reveal a relationship exists between sales and customer ages. Which of the following levels of the dat pyramid does this correspond to?
a)data
b)information
c)knowledge
d)wisdom
b)information
Over an 18-month period, XYZ Co's sales have been found to have an underlying linear trend of y = 7.112 + 3.949x, where y is the number of items sold and x represents the month. Monthly deviations from trend have been calculated, and volume of sales in month 19 is expected to be 1.12 times the trend value. What is the forecast number of items to be sold in month 19?
a)73
b)82
c)92
d)94
c)92
Last year, the government of Country Y issued new bonds at $200 each, offering a nominal yield of 6%. Since then, the economy has slowed, and the current market interest rate has fallen to 3%. What is the maximum price a rational investor would now be willing to pay for these government bonds?
a) $199
b) $233
c) $400
d) $500
C) $400
Deeside Co is considering whether or not to invest in a project which would cost $200,000 now, but would then yield $20,000 per annum every year in perpetuity, starting 1 year from now.
Deeside's cost of capital is 8%.
Calculate the present value of the future cash inflows the project will generate.
(Give your answer as a whole number, with no decimal places.)
$250000
Company Z (based in a Eurozone country) recently purchased goods for $770,000 from Stayt Co (a US company), with payment due in 30 days.
The exchange rate at the date of the purchase was €1: $1.10.
If the exchange rate at the date of payment is €1: $1.13, which of the following is correct?
a)Company Z will make an exchange loss of €18,584.07.
b)Company Z will make an exchange loss of €16,894.61.
c)Company Z will make an exchange gain of €16,894.61.
d)Company Z will make an exchange gain of €18,584.07.
d)Company Z will make an exchange gain of €18,584.07.
Seon Co runs a chain of fashion retail stores. A key element of its commercial success comes from being able to identify customer trends, and responding to them, more quickly than its competitors. Which of the following are potential sources of big data for Seon Co? Select all that apply:
1)Online video clips of clothes being shared by customers
2)Daily transactions records from stores
3)Inventory records from the chain's central warehouse
4)Keywords from conversations about fashion on social media
5)The number, and level, of discounts Seon Co has to offer on its products
1and4
Using an additive time series model, the quarterly trend in a company's operating profit is given by Y = 65 + 7t, where Y is the forecast profit (in $ 000) and t is the quarter (starting with t = 1 in the first quarter of 20X5). If the seasonal component in the fourth quarter is -30, what is the forecast for the company's operating profit for the fourth quarter of 20X6, to the nearest $'000?
91