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Corporate Finance · Quiz 1 · 27 Oct 2024 · September 2024 term

Question 3: Assume Shyam earns Rs. 10000 in period 1 and Rs 12000 in …

Question 3

+4 marksOne correct option

Assume Shyam earns Rs. 10000 in period 1 and Rs 12000 in period 2. He spends his earnings on consumption in period 1 and period 2. The prices of consumption in period 1 and period 2 are the same (equal to 1). If prevailing interest rate is 10% then the slope of the intertemporal budget constraint is

  1. A

    1.10

  2. B

    0.91

  3. C

    -0.91

  4. D

    -1.10

Show answer

Correct answer

  • D

    -1.10

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Question 3 of 25 in the IIT Madras BS Corporate Finance (Corporate Finance) Quiz 1 paper sat on 27 Oct 2024, in the September 2024 term (IIT M DEGREE AN EXAM QDB2 27 Oct 2024). It carries 4 marks.

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