Which Three of the Following Statements Are Correct

question 10

Multiple Choice

Which three of the following statements are correct?

• A) Foreign banking in the UK is UK banks conducting transactions in sterling with non- UK residents.
• B) The main function and source of profits of wholesale banks is to take deposits and lend money.
• C) Unit trusts are open- ended collective investment funds.
• D) Pension funds typically invest between 40 and 80 per cent of their funds in shares.

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Definitions:

Production Possibilities Frontier

An economic model that depicts the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized.

Full Employment

An economic situation where all available labor resources are being used in the most efficient way possible, typically characterized by low unemployment.

Entrepreneurial Ability

The innovation and risk-taking skills that a person possesses to create and manage a business successfully.

Economic Success

The achievement of desired financial outcomes in growth, employment, and stable prices within an economy.