Which of the following would NOT be a way to increase the return on equity? A) Buy back bank stock. B) Pay higher dividends. C) Acquire new funds by selling negotiable CDs and increase assets with them. D) Sell more bank stock. ANSWER D
Date: September 10th, 2020
Equity instruments are traded in the ________ market. A) money B) bond C) capital D) commodities ANSWER C
Date: September 10th, 2020
An increase in nominal GDP implies that the country is producing a greater quantity of goods and services. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
A stockholder’s ownership of a company’s stock gives her the right to A) vote and be the primary claimant of all cash flows. B) vote and be the residual claimant of all cash flows. C) manage and assume responsibility for all liabilities. D) vote and assume responsibility for all liabilities. ANSWER B
Date: September 10th, 2020
The ability of a central bank to set monetary policy goals is A) political independence. B) goal independence. C) policy independence. D) instrument independence. ANSWER B
Date: September 10th, 2020
The firm depicted in Figure 8.1 is: A) earning a positive economic profit. B) incurring an economic loss and should shut down. C) incurring an economic loss but it should continue to operate in the short run so long as price exceeds average variable costs. D) earning a zero economic profit. ANSWER A
Date: September 10th, 2020
A financial market in which only short-term debt instruments are traded is called the ________ market. A) bond B) money C) capital D) stock ANSWER B
Date: September 10th, 2020
An increase in foreign real income would shift the: A) aggregate demand curve rightward. B) aggregate demand curve leftward. C) aggregate supply curve rightward. D) aggregate supply curve leftward. ANSWER A
Date: September 10th, 2020
If a higher inflation is expected, what would you expect to happen to the shape of the yield curve? Why? What will be an ideal response? ANSWER The yield curve should have a steep upward slope. Nominal interest rates will increase if the inflation rate increases, therefore, bond purchasers will require a higher term […]
Date: September 10th, 2020
An increase in wealth would shift the: A) aggregate demand curve rightward. B) aggregate demand curve leftward. C) aggregate supply curve rightward. D) aggregate supply curve leftward. ANSWER A
Date: September 10th, 2020
