Other questions in this quiz

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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