IF the expected inflation will happen, then all statements will be correct about inflation except:

a.

It reduces the savings in financial institutions

b.

It reduces the purchasing power per unit

c.

It reduces the value of the currency

d.

It decreases the price level of all goods and services

When bonds are issued at above the face value, it is issued at

a.

Premium

b.

Discount

c.

None of the given options

d.

Par

What will be the expected inflation rate using estimation formula if the real interest is 3.5% and the nominal interest is 6%:

a.

2.5%

b.

2.7%

c.

3.5%

d.

1.5%

Which statement is correct about T-bills transaction?

a.

Commercial bank facilitates the T-Bills transaction with 1-2 years maturity.

b.

Capital Market Authority facilitates the T-bills transaction in less than 1 year maturity.

c.

Commercial bank facilitates the T-Bills transaction less than 1 year to 1 year maturity.

d.

Central Bank facilitates the T-bills transaction in less than 1 year to 1 year maturity.