A legal document between a lender and a borrower whereby the later agrees to certain conditions for the repayment of the sum of money borrowed; is called:
(a) Promissory Note-✔️
(b) Bill of exchange
(c) Both of the above
(d) None of the above
The proportion of a sum of money that is paid over a specified time period in payment for its loan is called:
(a) Rate of interest-✔️
(b) Rate of substitution
(c) Rate of return
(d) None of the above
The net profit after depreciation as a percentage of average capital employed in a business is known as:
(a) Rate of Substitution
(b) Rate of Interest
(c) Rate of Return-✔️
(d) None of the above
The term used to describe a sharp slowdown in the rate of economic growth or a modest decline in economic activity is called:
(a) Depression
(b) Slump
(c) Recession-✔️
(d) None of the above
Scarce inputs that can yield utility through production or provision of goods and services are referred to as:
(a) Resources-✔️
(b) Assets
(c) Means
(d) Capabilities
A tax levied as a proportion of the retail price of a commodity at the point of sale is called:
(a) Income tax
(b) Wealth tax
(c) Sales tax-✔️
(d) Property tax
What is the term for generating capital from income?
(a) Self-financing-✔️
(b) Self-sufficiency
(c) Both of the above(d) None of the above
The total increase in the welfare of society from an economic action is called:
(a) Fringe Benefits
(b) Social Benefits-✔️
(c) Individual Benefits
(d) None of the above
A loan bearing either no rate of interest or an interest rate which is below the true cost of capital lent is known as:
(a) Soft Loan-✔️
(b) Personal Loan
(c) Finance
(d) Credit
Buying and selling with a view to buying and selling at a profit later when the prices have changed is termed:
(a) Surmising
(b) Speculation-✔️
(c) Guesswork
(d) Estimate
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