BUS 329 Quiz 4 | Questions and Answers Latest Updated 2026 (Graded
A+) - Murdoch University
Question 1
Incorrect
1. Which of the following are fundamental factors determine the level of interest rates?
Mark 0.00 out
of 1.00
Select one:
a. Households, business & Government
b. Savers of funds & suppliers of funds
c. Both A & B
d. None of the above
Question 2
Correct
27. Which of the following statements is FALSE
Mark 1.00 out
of 1.00
Select one:
a. Normal distribution is symmetric
b. Normal distribution is completely characterized by mean and standard deviation
c. With asymmetric distribution, standard deviation is a complete measure of risk
d. In normal distribution the probability of any positive deviation above the mean is equal to that of a negative
deviation of the same magnitude.
Question 3
Correct
15. If the Reserve Bank of Australia (RBA) lowers the cash rate, ceteris paribus, the equilibrium levels of funds lent
Mark 1.00 out
will ---------------- and the equilibrium level of real interest rates will ---------------
of 1.00
Select one:
a. Increase, increase
b. Increase, decrease
c. Decrease, increase
d. Decrease, decrease
, Question 4
Correct
19. Effective annual rate of an investment is 4.04%, therefore, the investment provides a return semi-annually
Mark 1.00 out
of 1.00
Select one:
a. 2.02%
b. 1.85%
c. 2.00%
d. None of the above
Question 5
Correct
11. Other things remaining the same, a decrease in the for loans drives the interest rate .
Mark 1.00 out
of 1.00
Select one:
a. Supply, down
b. Demand, up
c. Demand, down
d. All A, B, & C are correct
Question 6
Correct
18. Annual percentage rates are computed using rather than interest rate.
Mark 1.00 out
of 1.00
Select one:
a. Compound, simple
b. Compound, continuous
c. Simple, continuous
d. Simple, compound
Question 7
Correct
17. is the appropriate rate to compare investments with different horizons.
Mark 1.00 out
of 1.00
Select one:
a. Geometric average
b. Arithmetic average
c. Effective annual rate
d. Average annual return
A+) - Murdoch University
Question 1
Incorrect
1. Which of the following are fundamental factors determine the level of interest rates?
Mark 0.00 out
of 1.00
Select one:
a. Households, business & Government
b. Savers of funds & suppliers of funds
c. Both A & B
d. None of the above
Question 2
Correct
27. Which of the following statements is FALSE
Mark 1.00 out
of 1.00
Select one:
a. Normal distribution is symmetric
b. Normal distribution is completely characterized by mean and standard deviation
c. With asymmetric distribution, standard deviation is a complete measure of risk
d. In normal distribution the probability of any positive deviation above the mean is equal to that of a negative
deviation of the same magnitude.
Question 3
Correct
15. If the Reserve Bank of Australia (RBA) lowers the cash rate, ceteris paribus, the equilibrium levels of funds lent
Mark 1.00 out
will ---------------- and the equilibrium level of real interest rates will ---------------
of 1.00
Select one:
a. Increase, increase
b. Increase, decrease
c. Decrease, increase
d. Decrease, decrease
, Question 4
Correct
19. Effective annual rate of an investment is 4.04%, therefore, the investment provides a return semi-annually
Mark 1.00 out
of 1.00
Select one:
a. 2.02%
b. 1.85%
c. 2.00%
d. None of the above
Question 5
Correct
11. Other things remaining the same, a decrease in the for loans drives the interest rate .
Mark 1.00 out
of 1.00
Select one:
a. Supply, down
b. Demand, up
c. Demand, down
d. All A, B, & C are correct
Question 6
Correct
18. Annual percentage rates are computed using rather than interest rate.
Mark 1.00 out
of 1.00
Select one:
a. Compound, simple
b. Compound, continuous
c. Simple, continuous
d. Simple, compound
Question 7
Correct
17. is the appropriate rate to compare investments with different horizons.
Mark 1.00 out
of 1.00
Select one:
a. Geometric average
b. Arithmetic average
c. Effective annual rate
d. Average annual return
