This quiz works best with JavaScript enabled. Home > Finance > Economics > Financial Economics > Financial Economics – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Economics Quiz 3 (13 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is measured on the Y axis of the Loanable funds market? A) Quantity of money. B) Nominal interest nominal interest rate. C) Real interest rate. D) Quantity of loanable funds. Show Answer Correct Answer: C) Real interest rate. 2. Murabahah is an agreement of supplier and seller A) False. B) True. Show Answer Correct Answer: A) False. 3. The benefits of Syariah Arbitrage A) Decrease accessibility and availability. B) Compliance with syariah principles. C) Detrimental to the Interests of Muslims. D) Loss of Integrity. Show Answer Correct Answer: B) Compliance with syariah principles. 4. Same item sale resale in Islamic term is? A) Bay Inah. B) Tawarruq. C) Muhallil. D) Hiyal. Show Answer Correct Answer: A) Bay Inah. 5. QE is usually used ..... when base interest rates cannot be cut any further. A) Liquidity trap. B) Recession. C) Financial crisis. D) Boom. Show Answer Correct Answer: A) Liquidity trap. 6. The rate of interest at which speculative demand for money become perfectly elastic is called ..... A) Liquidity Trap Rate. B) Liquidity Trap Interest Rate. C) Liquidity Trap. D) Liquidity Trap Interest. Show Answer Correct Answer: C) Liquidity Trap. 7. The Central Bank can print money whenever they want. A) FALSE. B) TRUE. Show Answer Correct Answer: A) FALSE. 8. What is one of the benefits of Sharia arbitrage in contributing to the growth of Sharia financial markets? A) It can lead to a decrease in demand for Sharia-compliant financial products. B) It can discourage financial institutions from developing new and innovative products. C) It can expand investment opportunities for Muslims who want to participate in financial markets aligned with their beliefs. D) It can limit the number of financial products available for Muslims who want to invest. Show Answer Correct Answer: C) It can expand investment opportunities for Muslims who want to participate in financial markets aligned with their beliefs. 9. The Money Supply is the total ..... of money in the economy. A) Figure. B) Amount. C) Number. D) Stock. Show Answer Correct Answer: D) Stock. 10. Which of the following is an example of Shariah arbitrage? A) Buying shares in a company that is compliant with Islamic law. B) Selling shares in a company that is non-compliant with Islamic law. C) Buying a Shariah-compliant bond at a discount and selling it at a premium. D) Investing in a high-risk venture that is compliant with Islamic law. Show Answer Correct Answer: C) Buying a Shariah-compliant bond at a discount and selling it at a premium. 11. What is a Central Bank? A) A national bank that provides financial and banking services for its country's government. B) Financial institution which performs the functions of accepting deposits from the public and making loans and investments. C) A central bank is a financial institution that is responsible for overseeing the monetary system and policy of a nation. D) None of above. Show Answer Correct Answer: C) A central bank is a financial institution that is responsible for overseeing the monetary system and policy of a nation. 12. The equilibrium rate of interest is determined by: A) Demand and Supply of Funds. B) Savings & Investment. C) Supply and Demand of Money. D) None of above. Show Answer Correct Answer: B) Savings & Investment. 13. Precautionary demand of holding monet depends upon the degree of ..... A) Asset or store of value. B) Price you pat to borrow money. C) Uncertainty/unforseen situation. D) Day to day transaction. Show Answer Correct Answer: C) Uncertainty/unforseen situation. ← PreviousRelated QuizzesEconomics QuizzesFinance QuizzesFinancial Economics Quiz 1Financial Economics Quiz 2 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books