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Y12 Economics B Edexcel - 1.4 credit in the economy Flashcards | StudBud

Explore/Y12 Economics B Edexcel - 1.4 credit in the economy

What is the definition of 'collateral'?

What's the main opportunity cost of selling a fixed asset?

Y12 Economics B Edexcel - 1.4 credit in the economy

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Y12 economics b edexcel - 1.4 credit in the economy

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Questions 10

Answers

1
What's the main opportunity cost of selling a fixed asset?
Raises a large sum of money
Loss of productivity
Get rid of idle assets
Might improve capacity utilisation
2
What is the definition of 'collateral'?
Damage to the business
Assets in the business
A asset of value upon which a loan is secured against
Liabilities in the business
3
Which of the following is an external source of SHORT-TERM finance??
Loan
Sale of fixed asset
Mortgage
Overdraft
4
Which of these forms of business ownership have unlimitied liability?
LTD
PLC
Sole trader/partnership
Franchise
5
What was the 'credit crunch' that occurred post GFC?
The global financial crisis
A banking crash
An increase in credit lines
Drying up of credit lines due to banking crisis
6
Which of these IS NOT an external source of finance?
Leasing&Hiring
Debt collection
Collaborative funding
Factoring of debt
7
Which one of the following would become a barrier to obtaining credit?
Lots of reserves in the bank
An economic boom
Poor credit rating due to bad trade credit history
Lots of fixed assets for collateral
8
Which of these is the definition of interest rates?
General increase in average prices
The cost of borrowing
<p>Difference between a country's imports and exports</p>
The value of one currency in terms of another
9
Which of these IS NOT an internal source of finance?
Trade credit
Sale of fixed assets
Retained profits
Owner's own capital
10
The bank can provide 3 main S of F. Which of the following 4 DOES NOT come from the bank?
Trade credit
Mortgage
Overdraft
Loan