Practice mode / Basic of Economics What does the discount rate refer to? A Option A: Advance deduction of the interest in purchasing, selling or lending a commercial paper B Option B: State (central) bank's interest rate on loans to its member banks C Option C: Both of them D Option D: None of them Correct answer C. Both of them Explanation The discount rate means both the interest deducted in advance when commercial paper is bought, sold or lent, and the rate a central bank charges on loans to its member banks. Show answer Report a problem Answer checked 11 October 2026 · How we write and check questions
Question 01 / Basic of Economics Production work and trade are split into separate processes carried out by different workers or groups of workers. What is this separation called? A Option A: Division of Labor B Option B: Closed shop C Option C: Open shop D Option D: Divided Labor Correct answer A. Division of Labor Show answer Open question
Question 02 / Basic of Economics What is meant by ‘earnest’ money? A Option A: Advance payment to bind a contract or bargain B Option B: A promise or assurance C Option C: A token of something to come D Option D: All of these Correct answer D. All of these Show answer Open question
Question 03 / Basic of Economics Endorsement means anything written on the back of a document. What, then, does it mean to endorse a cheque? A Option A: To sign one's name on the back of the cheque B Option B: To verify signature C Option C: To verify the person holding the cheque D Option D: To sign one's name on the front of the cheque Correct answer A. To sign one's name on the back of the cheque Show answer Open question
Question 04 / Basic of Economics What is the method called by which one currency is bought, sold or valued in terms of other currencies, gold or accounting units such as the IMF’s Special Drawing Right? A Option A: Currency valuation B Option B: Currency value C Option C: Currency exchange D Option D: Exchange rate Correct answer D. Exchange rate Show answer Open question
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