1.The getting prerequisites of two organizations Mercado Ltd. also, Mercando Ltd. too

as the loaning terms accessible to them in various business sectors are given as under:

Firm Objective

Loaning term accessible

Fixed Maturity

interest Floating interest

Mercado US$ 100 mln. at fixed rate 9% 6m LIBOR + 0.75% 5 years

Mercando US$ 100 mln. at coasting rate 8% 6m LIBOR + 0.25% 5 years

You are needed to

Disclose how to approach a trade to lessen their acquiring cost.

2. As per - hypothesis of premium, the pace of Interest is the cost of credit which is

dictated by the interest and supply for loanable assets.

a. Loanable Fund hypothesis b. Efficiency hypothesis

c. Forbearance hypothesis d. None of these

3. As per - hypothesis interest emerges because of the efficiency of capital.

a. Loanable Fund hypothesis b. Efficiency hypothesis

c. Forbearance hypothesis d. Traditional hypothesis

4. The Time-Preference Theory of Interest was clarified by -

a. John Rae b. Alfred Marshall

c. JM Keynes d. JB Clark

5. - characterized Interest as "a record of the local area's inclination for a dollar of

present over a dollar of future pay."

a. Fisher b. Alfred Marshall

c. JM Keynes d. JB Clark

6. As per - hypothesis, Interest is the award for the useful utilization of the capital

which is equivalent to the minimal usefulness of actual capital.

a. Loanable Fund hypothesis b. Efficiency hypothesis

c. Forbearance hypothesis d. Old style hypothesis

7. Loanable Fund hypothesis is otherwise called -

a. Traditional hypothesis b. Neo-old style hypothesis

c. Request and Supply hypothesis d. Usefulness hypothesis

8. Neo-Classical hypothesis of interest was elucidated by -

a. Prof. Fisher b. Alfred Marshall

c. Bunch Wicksel d. JB Clark

9. As indicated by Keynes, Interest is absolutely a 'money related marvel'.

a. Fisher b. Alfred Marshall

c. JM Keynes d. JB Clark

10. Who propounded liquidity inclination hypothesis of interest?

a. Prof.Fisher b. Alfred Marshall

c. JM Keynes d. JB Clark