Question 1

Retiring early will need

Options :

A : Normal saving as planned earlier

B : Accelerated savings to get the goal

C : Delayed savings

D : All of the above

Answer: B

Question 2

Under flexible exchange rates a small open economy should

Options :

A : lose control of its monetary policy

B : be insulated from its trading partners' inflation

C : tend to experience the inflation of its trading partners

D : find that changes in its interest rates match changes in its trading partner-s interest rates

Answer: B

Question 3

In India, the interest rate of a floating rate security is linked to ___________.

Options :

A : MIBOR

B : CIROB

C : Repo rate

D : Reverse Repo Rate

Answer: A

Question 4

The income received by the approved superannuation fund on the investments made by the fund is

Options :

A : Exempt from income tax

B : Taxed as the concession rate of 10% of the income

C : Tax at the hands of employees concerned based on the share of each employee

D : Taxed under Capital Gains Tax depending upon the nature of investment

Answer: A

Question 5

Michael estimates opportunity cost of investment to be 10.5% compounded annually. Which of the following is the best proposal?

Options :

A : Receive Rs. 5,500/- at beginning of each year for 15 years

B : Receive Rs. 5,500/- at the end of each year for 19 years

C : Receive Rs. 45,000/- today

D : Receive Rs. 1,20,000/- at the end of 10 years

Answer: C