1. If the value of the pound decreases, who will be affected?
- UK businesses
- UK importers of materials
- UK exporters of goods
- UK tourism
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2. A business is most likely to be badly affected by a rise in interest rates if it has:
- High cash balances
- High borrowings at a variable rate
- High borrowings at fixed a rate
- High fixed costs
3. What is meant by a fixed interest rate?
- An interest rate which will not change at whatsoever over the life of a loan
- An interest rate which can flucuate
- A tax paid by tradesmen
- Interest rates will only change if the prime minister says they must
4. In the UK, the base interest rate is set by...
- Monetary Policy Commitee
- Chief secretary to the treasury
- The house of commons
- The chancellor of the exchequer
5. What is an interest rate?
- The percentage reward or payment over a period of time that is given to savers on savings or paid by borrowers on loans
- A tariff on foreign imports
- A tax paid by consumers when buying foreign goods
- The rate at which foreign goods are bought
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