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latihan IEO 2

Total questions: 14

Worksheet time: 2hrs 20mins

Name
Class
Date
1.

Parma Co requires all divisions to prepare their own budgets and these are then approved by head office. The current managing director of Parma Co believes that it would be better if all budgets for the divisions are prepared centrally at head office, and divisional managers told that they must aim to achieve them. Which of the following is an advantage of non-participative budgeting as

compared to participative budgeting?

a)

It increases motivation

b)

It is less time consuming

c)

It increases acceptance

d)

The budgets produced are more attainable

2.

The CFO of Lang Co wants to earn a higher return on the company’s cash holdings. Which of the following comparable maturity investments will earn Lang the highest expected return?

a)

Certificates of deposit

b)

Treasury bills

c)

Commercial papers

d)

Bank deposits

3.
a)

19.00%

b)

23.75%

c)

27.93%

d)

38.00%

4.

Lydia wants to put her savings into an account to earn some interest. She analyzes the savings account market and finds that the best available interest rate is 5% per annum and takes this offer. Her sister, Elisa, has saved the same amount of money as Lydia, but she does not want to put her money into a bank account; instead, she goes for a subscription in government bonds, which pay 4.8% per annum. The marginal tax rate on interest is 10%. However, the fixed interest rate earned on government bonds is tax exempt. The expected rate of inflation for the next year is 2.5%. Which of the two sisters will be better off at the end of the year?

a)

Lydia

b)

Elisa

c)

They will be equally well off

d)

Not enough information

5.

Fenomena "tragedy of commons" terjadi karena

a)

sumber daya dimiliki secara pribadi

b)

sumber daya publik dieksploitasi berlebihan

c)

harga pasar terlalu stabil

d)

tidak ada barang substitusi

6.

We often observe that people with health insurance demand more pharmaceutical products than they actually need. This phenomenon is known as:

a)

adverse selection

b)

moral hazard

c)

an efficient free market outcome

d)

profit maximization

7.

apa yang dimaksud dengan "blockchain" dalam konteks cryptocurrency

a)

platform untuk mengembangkan token baru

b)

jenis wallet untuk menyimpan aset digital

c)

sebuah algoritma perdagangan otomatis

d)

buku besar terdistribusi untuk mencatat semua transaksi

8.

keuntungan utama security crowdfunding bagi start up adalah

a)

akses pendanaan tanpa melalui proses IPO

b)

tidak perlu membagi kepemilikan saham

c)

pendanaan tanpa batas waktu

d)

tidak perlu laporan keuangan

9.
a)

Losing this game is just as hard as winning

b)

The game has one pure-strategy Nash equilibrium

c)

The game has three pure-strategy Nash equilibria, each with (0 : 0) payoff

d)

The game has no pure- or mixed-strategy Nash equilibria

10.

Which of the following is typically not a role of a central bank?

a)

The executor of monetary policy

b)

Lender of last resort

c)

The sole issuer of legal tender

d)

All other options are typical CB’s roles

11.

When investors buy a share to cover their short positions, which results in a rapid increase in this share price, this is called…

a)

Short squeeze

b)

Game stop

c)

Long squeeze

d)

Fundamental shock

12.

Which of the following is the least likely to prevent the ‘Law on One Price’ from holding in international trade?

a)

One monopolist supplier on multiple markets and inability to resell the traded good

b)

import tariffs

c)

common land border between the exporting and the importing countries

d)

transportation cost

13.

Suppose the U.S. one-year interest rate is 3% per year, while a foreign country has a one-year interest rate of 7% per year. Ignoring risk and transaction costs, a U.S. investor should invest in foreign bonds if the expected yearly rate of depreciation of the foreign currency is

a)

Less than 4%

b)

Less than 6%

c)

More than 4%

d)

Positive

14.

which would be considered expanxionary monetary policy

a)

Raising the discount rate

b)

Increasing reserve ratios

c)

Buying treasury securities

d)

Strengthening currency