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Corporate Finance · Quiz 1 · 23 Feb 2025 · January 2025 term

Question 14: Assume Ramesh earns Rs 100 in period 1 and Rs 150 in per…

Question 14

+4 marksOne correct option

Assume Ramesh earns Rs 100 in period 1 and Rs 150 in period 2. He spends his earnings on consumption in both periods. The prices of consumption good in period 1 and period 2 are the same (equal to 1). If the prevailing interest rate is 25%, then the slope of the intertemporal budget constraint

  1. A

    1.25

  2. B

    0.80

  3. C

    -0.80

  4. D

    -1.25

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Correct answer

  • D

    -1.25

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Question 14 of 25 in the IIT Madras BS Corporate Finance (Corporate Finance) Quiz 1 paper sat on 23 Feb 2025, in the January 2025 term (IIT M DEGREE AN EXAM QDB2 23 Feb 2025). It carries 4 marks.

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