Q1. A common stock is ...  a claim on the earnings and assets of a company.  an expense.
 a share of bonds in a corporation.
 a form of debt.
Q2. A business cycle ...
 has no effect on economic performance.
 involves borrowing from investors and lending to savers.
 is the upward movement of the aggregate output in an economy.
 is the upward and downward movement of the aggregate output in an economy.
Q3. Which of the following statements correctly describes the average price of goods and services in an economy?
 It is the aggregate price level.
 It is the rate of change in the inflation rate.
 It is the rate of change in the expenses of government.
 It is the price determined by the South African Reserve Bank.
Q4. Which of the following is the basic function of financial markets?
 selling of debts and equities
 transferring funds from savers to borrowers
 offering direct finance
 channelling funds from borrowers to savers 22
Q5 Which of the following is not a category of financial markets?
 an insurance market
 debt and equity market
 money market
 capital market
Q6. Of the following, the smallest is ...
 near money.
 other demand deposits.
 coins and bank notes.
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