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Q1. A common stock is ... [1] a claim on the earnings and assets of a company. [2] an expense. 

[3] a share of bonds in a corporation. 

[4] a form of debt. 


Q2. A business cycle ... 

[1] has no effect on economic performance. 

[2] involves borrowing from investors and lending to savers. 

[3] is the upward movement of the aggregate output in an economy. 

[4] 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? 

[1] It is the aggregate price level. 

[2] It is the rate of change in the inflation rate. 

[3] It is the rate of change in the expenses of government. 

[4] It is the price determined by the South African Reserve Bank. 


Q4. Which of the following is the basic function of financial markets? 

[1] selling of debts and equities 

[2] transferring funds from savers to borrowers 

[3] offering direct finance 

[4] channelling funds from borrowers to savers 22 


Q5 Which of the following is not a category of financial markets? 

[1] an insurance market 

[2] debt and equity market 

[3] money market 

[4] capital market 


Q6. Of the following, the smallest is ... 

[1] near money. 

[2] other demand deposits. 

[3] coins and bank notes. 

[4] M2.

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Subject: Business, Economics
A common stock is . [1] a claim on the earnings and assets of a company. [2] an expense. [3] a share of bonds in a corporation. [4] a form of debt....
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