The Federal Reserve entity that makes decisions regarding the conduct of open market operations is the A) Board of Governors. B) chairman of the Board of Governors. C) Federal Open Market Committee. D) Open Market Advisory Council ANSWER C
Date: September 10th, 2020
A financial market in which previously issued securities can be resold is called a ________ market. A) primary B) secondary C) tertiary D) used securities ANSWER B
Date: September 10th, 2020
A joint venture allows a foreign firm to easier adjust to a new market and often meet various institutional requirements. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Assume the government decides to impose a per-unit tax on a good produced in a perfectly competitive market. a. Graphically illustrate the short-run effects of the tax on the cost conditions faced by a representative firm in the market. b. Explain the adjustment process to long-run equilibrium in the market. What has happened to long-run […]
Date: September 10th, 2020
Marginal cost is defined as the change in ________ cost when output changes by one unit. In the short run, marginal cost can also be measured by the change in ________ cost when output changes by one unit. A) total; fixed B) variable; fixed C) fixed; variable D) total; variable ANSWER D
Date: September 10th, 2020
Which of the following has NOT resulted from more active liability management on the part of banks? A) increased bank holdings of cash items B) aggressive targeting of goals for asset growth by banks C) increased use of negotiable CDs to raise funds D) an increased proportion of bank assets held in loans ANSWER […]
Date: September 10th, 2020
The labor force is 100 million and the unemployment rate is 5 percent. One million people quit looking for a job. What is it called when an individual leaves the labor force, and in this case what is the new unemployment rate? A) Encouraged worker, 5 percent. B) Discouraged worker, 5.05 percent. C) Discouraged worker, […]
Date: September 10th, 2020
In terms of location decisions, firms evaluate the infrastructure of the area in terms of access to transportation as well as the quality of life. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
According to this theory of the term structure, bonds of different maturities are not substitutes for one another. A) segmented markets theory B) expectations theory C) liquidity premium theory D) separable markets theory ANSWER A
Date: September 10th, 2020
Which of the following benefits directly from any increase in the corporation’s profitability? A) a bond holder B) a commercial paper holder C) a shareholder D) a T-bill holder ANSWER C
Date: September 10th, 2020
