Question : Which of these statements is true?

Option 1: Under competitive asset market conditions, the price of a bond must always be equal to its present value in equilibrium.

Option 2: Under competitive asset market conditions, the price of a bond must be less than its present value to benefit the seller.

Option 3: Under competitive asset market conditions, the price of a bond must exceed its present value to benefit the buyer.

Option 4: Under competitive asset market conditions, the present value must exceed the price of a bond to benefit the seller.

Question : Which of the following occurs when labour productivity rises?

Option 1: The equilibrium nominal wage falls.

Option 2: The equilibrium quantity of labour falls.

Option 3: Competitive firms will be induced to use more capital.

Option 4: The labour demand curve shifts to the right.

Question : Which among the following statements is incorrect?

Option 1: The Industrial Securities Market is also known as a gilt-edged market.

Option 2: The secondary market is the market for the sale and purchase of previously issued securities.

Option 3: RBI plays a dominant role in the gilt-edged market through its 'Open Market Operations'.

Option 4: The primary market is also known as the new issue market.

Question : The internal rate of return:

Option 1: must be less than the investment rate if the firm is to invest.

Option 2: make the present value of profit equal to the present value of costs.

Option 3: falls as the annual yield of an investment rises.

Option 4: is equal to the market interest rate for all the firm's investments.

Question : The following histogram shows the weekly wages of workers at a factory.

How many workers get wages of more than Rs.200?

Option 1: 95

Option 2: 85

Option 3: 70

Option 4: 80