Business

Which type of budget ties together the other three types of budgets?

QUESTION Which type of budget ties together the other three types of budgets? A) capital budget B) cash budget C) master budget D) operating budget E) sales budget   ANSWER Answer: C Explanation: C) Master budgets tie together the other three budgets (capital, cash, and operating) to present the company’s overall plan of action for […]

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Date: September 3rd, 2020

The Federal Reserve helps get money to commercial banks by making curr

QUESTION The Federal Reserve helps get money to commercial banks by making currency available and by making loans available. Indicate whether the statement is true or false.   ANSWER Answer: TRUE Explanation: The Federal Reserve helps get money to commercial banks by making currency available and by making loans available.

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Date: September 3rd, 2020

Insurance companies typically invest any excess funds in stocks, real

QUESTION Insurance companies typically invest any excess funds in stocks, real estate, and other assets. Indicate whether the statement is true or false.   ANSWER Answer: TRUE Explanation: Because many insurance companies collect more in premiums than they pay out in insured claims or operating expenses, they typically invest any excess funds in stocks, real […]

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Date: September 3rd, 2020

Bank deposit insurance and other policies were adopted to protect depo

QUESTION Bank deposit insurance and other policies were adopted to protect depositors as a result of the many banking troubles leading up to the Great Depression. Indicate whether the statement is true or false.   ANSWER Answer: TRUE Explanation: The many banking troubles leading up to the Great Depression did result in the creation of […]

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Date: September 3rd, 2020

Because of FDIC insurance, a depositor’s $1,000,000 would be safe if h

QUESTION Because of FDIC insurance, a depositor’s $1,000,000 would be safe if he or she were to have it evenly deposited among four banks. Indicate whether the statement is true or false.   ANSWER Answer: TRUE Explanation: Because the SAIF, via the SDIC, insures up to $250,000 per depositor per bank, $1,000,000 divided up evenly […]

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Date: September 3rd, 2020

Beginning in the 1980s and 1990s, as memories of the Great Depression

QUESTION Beginning in the 1980s and 1990s, as memories of the Great Depression faded, massive deregulation of our financial systems took place. Indicate whether the statement is true or false.   ANSWER Answer: TRUE Explanation: Beginning in the 1980s and 1990s, as memories of the Great Depression faded, massive deregulation of our financial systems took […]

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Date: September 3rd, 2020

When a company sells stock to the general public for the first time, i

QUESTION When a company sells stock to the general public for the first time, it is called an initial public offering. Indicate whether the statement is true or false.   ANSWER Answer: TRUE Explanation: Initial public offering is the name given to a company’s first-time sale of its stock to the general public.

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Date: September 3rd, 2020