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1. Double taxation treaties are designed to:
A) Reduce cross-border investment
B) Prevent double taxation
C) Tax all types of income at the same rate
D) Ensure both countries apply taxation
2. Stablecoins were introduced to overcome the volatility issues associated with speculative cryptocurrencies.
Many hold treasury securities and commercial paper as their reserves. What is the greatest concern in relation to this?
A) Banks would not buy their assets as they do not support Stablecoins
B) If the underlying assets had to be sold rapidly, then the risk of a cyber breach would be significant and cause large losses for investors
C) They are often referred to as virtual currencies to indicate that they are not issued or guaranteed by central banks and so are not fiat money
D) If the underlying assets had to be sold rapidly, then the sheer size of their holdings would cause serious liquidity issues and potential contagion in credit markets
3. Which type of trading system employs market makers?
A) Order-driven
B) On-exchange
C) Quote-driven
D) Over-the-counter
4. Historically, rapid technological change and globalisation have:
A) Decreased urbanisation
B) Increased bond issuance
C) Decreased equity issuance
D) Increased inflationary pressure
5. Once a company reaches the point known as the minimum efficient scale, the theory of the firm suggests that the company should:
A) Accelerate its output expansion
B) Halt its output expansion
C) Decrease its unit price
D) Increase its unit price
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: D | Question # 3 Answer: C | Question # 4 Answer: B | Question # 5 Answer: B |
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