Investor's Financial Imbalances Quiz

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Questions and Answers

The rate of exchange between future consumption (future rupee) and current consumption (current rupee) is the pure rate of ______.

interest

An investment is the current commitment of rupee for a period of time in order to derive future payments that will compensate the investor for (1) The time the funds are committed, (2) The expected rate of ______, and (3) The uncertainty of the future payments.

inflation

The 'Investor' can be an individual, a government, a pension fund, or a ______.

corporation

This study emphasizes investments by ______ investors.

<p>individual</p> Signup and view all the answers

An individual who purchases small amounts of securities for themselves, as opposed to an institutional investor, Also called as Retail Investor or Small ______.

<p>Investor</p> Signup and view all the answers

For secure life and for bright future people start ______.

<p>investing</p> Signup and view all the answers

When current income exceeds current consumption desires, people tend to ______ the excess.

<p>save</p> Signup and view all the answers

One possibility with savings is to put the money under a mattress or bury it in the backyard until some future time when consumption desires exceed current income. When they retrieve their savings, they have the same amount they ______.

<p>saved</p> Signup and view all the answers

Another possibility is that they can give up the immediate possession of these savings for a future larger amount of money that will be available for future consumption. This tradeoff of present consumption for a higher level of future consumption is the reason for ______.

<p>saving</p> Signup and view all the answers

What investor does with the savings to make them increase over time is ______.

<p>investment</p> Signup and view all the answers

In contrast, when current income is less than current consumption desires, people ______ to make up the difference.

<p>borrow</p> Signup and view all the answers

Those who give up immediate possession of savings expect to receive in the future a greater amount than they ______ up.

<p>gave</p> Signup and view all the answers

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