How did McDonalds address the drive-through innovation in China? What will be an ideal response? ANSWER Customers had to be taught how to use the drive-through window. Many outlets had customers place their orders through a person rather than a speaker to demystify the procedure.
Date: September 10th, 2020
Briefly state several reasons for the decline in sales for McDonald’s in 2001-2002. What will be an ideal response? ANSWER Consumer tastes and preferences changed as more individuals became concerned about the high-fat content of most fast foods. There were a number of lawsuits launched against the fast food industry with respect to health […]
Date: September 10th, 2020
Who are the voting members of the Federal Open Market Committee and why is this committee important? Where does the power lie within this committee? What will be an ideal response? ANSWER The FOMC determines the monetary policy of the United States through its decisions about open market operations. It also effectively determines the […]
Date: September 10th, 2020
Instrument independence is the ability of ________ to set monetary policy ________. A) the central bank; goals B) Congress; goals C) Congress; instruments D) the central bank; instruments ANSWER D
Date: September 10th, 2020
An inverted yield curve predicts that short-term interest rates A) are expected to rise in the future. B) will rise and then fall in the future. C) will remain unchanged in the future. D) will fall in the future. ANSWER D
Date: September 10th, 2020
Bank capital has both benefits and costs for the bank owners. Higher bank capital ________ the likelihood of bankruptcy, but higher bank capital ________ the return on equity for a given return on assets. A) reduces; reduces B) increases; increases C) reduces; increases D) increases; reduces ANSWER A
Date: September 10th, 2020
U.S. GDP excludes underground activities. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
The higher a security’s price in the secondary market the ________ funds a firm can raise by selling securities in the ________ market. A) more; primary B) more; secondary C) less; primary D) less; secondary ANSWER A
Date: September 10th, 2020
Why does the Federal Reserve Bank of New York play a special role within the Federal Reserve System? What will be an ideal response? ANSWER The New York district contains the largest banks in the country. The New York Fed supervises and examines these banks to insure their soundness and the safety of the […]
Date: September 10th, 2020
In 2001 and 2002, McDonald’s tried to improve the quality of its service by hiring mystery shoppers to evaluate service, cleanliness, and food quality. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
