location and interest rates

A restaurant is considering relocating. Which of the following is the most likely reason for this decision? Select one correct answer.

• to reduce rent costs

• to access better quality ingredients

• to be closer to a high foot traffic area

• to expand kitchen facilities

Which type of business is most likely to benefit from being located near a university campus? Select one correct answer.

• a bookstore

• a logistics company

• a construction company

• a car dealership

Which of the following factors is most crucial for a coffee shop when selecting a location? Select one correct answer.

• availability of large storage space

• proximity to coffee bean suppliers

• closeness to a busy shopping area

• access to industrial machinery

A shop selling school uniform and equipment has decided to relocate its business. Which one of the following is the most likely reason for this move? Select one correct answer.

• for better access to materials

• to be closer to a wide range of skilled workers

• to move closer to the school and customers

• to be further away from competitors

Which one of the following businesses is most likely to locate itself on a high street in a busy residential area? Select one correct answer.

• a farm growing wheat and barley

• an estate agent

• a factory producing cars

• a warehouse for an online retailer

Which of the following factors is likely to be most important when choosing a location for a hairdresser business? Select one correct answer.

• proximity to materials

• closeness to businesses involved in manufacturing

• access to cheap energy supplies

• closeness to good parking and bus links

In 2008 the government of Vietnam increased the rate of interest from 6.5%

to 10.25%. An increase in interest rates is an instrument of

• Fiscal policy

• Monetary policy

• Supply side policy

• Regional policy

Monetary policy would involve changes in which one of the following?

• Government spending

• Interest rates

• Taxation

• Balance of payments

If the central bank lowers interest rates, which of the following is a likely effect?

• Appreciation of the national currency

• Increase in borrowing and investment

• Decrease in consumer spending

• Reduction in money supply

What is the immediate effect of a decrease in interest rates on consumer loans?

• Loans become more expensive

• Loans become cheaper

• No change in loan costs

• Loan availability decreases