If demand of loanable demands increases then borrowing cost of funds is

by
A. higher
B. zero
C. upside
D. lower
✅ The correct answer is option A.
If demand of loanable demands increases then borrowing cost of funds is higher. The demand for loanable funds represents the behavior of borrowers and the quantity of loans demanded. The lower the interest rate, the less expensive it is to borrow.

Market value size of outstanding instruments of capital markets depends on factors

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A. primary cash flows
B. number of issued securities
C. market prices of securities
D. both b and c
✅ The correct answer is option D.
Market value size of outstanding instruments of capital markets depends on factors number of issued securities and market prices of securities.

A firm that purpose to connect sellers and buyers of foreign currency-denominated bank deposits is entitled

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A. a wholesaler
B. a broker
C. a bank
D. an investor
✅ The correct answer is option B.
A firm that purpose to connect sellers and buyers of foreign currency-denominated bank deposits is entitled a broker. A broker is an individual or firm that charges a fee or commission for executing buy and sell orders submitted by an investor. A broker also refers to the role of a firm when it acts as an agent for a customer and charges the customer a commission for its services.

406. In Porter’s generic strategies model, a focus strategy involves

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A. selling a limited range of products
B. selling to a narrow customer segment
C. selling to one region only
D. selling simple products that are cheap to produce
✅ The correct answer is option B.
In Porter’s generic strategies model, a focus strategy involves selling to a narrow customer segment. Porter’s generic strategies describe how a company pursues competitive advantage across its chosen market scope. There are three/four generic strategies, either lower cost, differentiated, or focus.

38. The oldest type of organization__________.

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A. functional organization
B. line organization
C. matrix organization
D. committee organization
✅ The correct answer is option B.
The oldest type of organization is line organization. Line organization structure is the oldest and simplest form of organization. In these organizations, a supervisor exercises direct supervision over a subordinate. Also, authority flows from the top-most person in the organization to the person in the lowest rung.

436. Acquisitions often fail to deliver the successes that were predicted prior to acquisition. What is the main reason for this failure?

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A. Premium price
B. Poor strategic leadership
C. Goodwill
D. Synergy
✅ The correct answer is option B.
Acquisitions often fail to deliver the successes that were predicted prior to acquisition. Poor strategic leadership is the main reason for this failure. Strategic leaders act in ways that manage the tension between success in daily tasks and success in the long term. They facilitate other’s strategic actions, too, by providing a balance of direction and autonomy, of learning from actions and rewarding appropriate risk-taking.

432. A firm’s reaction to a customer complaint that results in customer satisfaction and goodwill is called a:

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A. service recovery paradox
B. service recovery
C. critical incident
D. moment of truth
✅ The correct answer is option B.
A firm’s reaction to a customer complaint that results in customer satisfaction and goodwill is called a service recovery. Service Recovery is a theory that suggests that a customer who has a bad experience and receives a prompt, effective response to their issues will be a more loyal customer, than a customer who had no bad experience at all.