Insurance and Risk Management Paper 22

1

In the course of 1923, German prices rose by approximately:






2

In the course of a year a pension fund buys £15m of UK government bonds, £30m of UK company shares, £10m of ordinary company shares. It also sells £5m of overseas government bonds and £9m of UK preference shares. Its net acquisition of assets during the year was:






3

In the flow of funds analysis of money supply determination an increase in government borrowing not financed by the sale of bonds is likely to lead to:






4

In the flow of funds approach to money supply determination a rise in the central bank’s official dealing rate will most likely:






5

In the loanable funds theory of interest determination, an increase in the productivity of capital equipment should lead to:






6

Interest is usually paid on money market instruments:






7

Interest rates are 7.5 per cent. A 9% corporate bond, maturing in three years time for £100 and paying annual coupons will have a price of:






8

Investment trusts often expose investors to higher capital risk than unit trusts because:






9

It is suggested in the text that the demand for money is not of great importance from the point of view of monetary policy because:






10

Long dated government bonds tend to have higher yields than short-dated bonds because:






Result

Total Questions:
Correct Answers:
Wrong Answers:
Percentage: