Soal Bahasa Inggris Niaga Modul 1 part 2

When future prices are higher than spot prices it is called...

• interest

• contango

• backwardation

• temporary bottleneck

What includes current account?

• Money invested in foreign currency

• Money invested in foreign firms

• Profits made by selling those investments.

• Copyrights

What kind of crisis the Russian Government faced in 1998?

• Balance of payment crisis.

• Financial crisis.

• Current account deficit

• Public sector crisis.

A process in which traditional banks are selling off their loans in the financial markets is called...

• recession

• securitization

• credit creation

• investment

One of the financial bias that has separated different forms of banking from each other and kept banks out of insurance business is called ....

• securitization

• corporate bonds

• glass-steagall act

• credit creation

Banks that concentrate on raising money for companies from private investors by finding buyers for their equity and corporate bonds are called ...

• merchant banks

• retail banks

• universal banks

• wholesale banks

What will banks in America do with a bankrupt firm?

• They will close it down.

• They will give it some more time to solve its problems

• They will try to repay its debts by selling off any assets it has.

• They will allow it to borrow more money

Barter is popular when...

• taxation is low

• people are not asset-rich

• inflation is low

• quality of money is certain

How can powerful firms discourage entry? By....

• producing a large output at lower costs

• spending lots of money on things such as advertising

• incurring huge sunk costs

• making firing an expensive process

Basel 2 was delayed until 2005 as ....

• it was bailed out by the IMF in 1998

• there was controversy over these more sophisticated risk classifications

• it ties a bank's capital adequacy ratio to the riskiness of the loans it makes

• it penalized banks no more for making loans to South Korea