Which of the following is an example of an intermediate-term debt? A) a fifteen-year mortgage B) a sixty-month car loan C) a six-month loan from a finance company D) a thirty-year U.S. Treasury bond ANSWER B
Date: September 10th, 2020
Which of the following statements most accurately describes the task of bank asset management? A) Banks seek the highest returns possible subject to minimizing risk and making adequate provisions for liquidity. B) Banks seek to have the highest liquidity possible subject to earning a positive rate of return on their operations. C) Banks seek to […]
Date: September 10th, 2020
In the money market, an excess demand for money is equivalent to an excess demand for bonds. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
The Chairman of the Board of Governors is chosen from among the seven governors and serves a ________, renewable term. A) one-year B) two-year C) four-year D) eight-year ANSWER C
Date: September 10th, 2020
Because of the large number of firms that operate in the agricultural industry, the supply of agricultural products is inelastic over the entire range of output. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
According to the liquidity premium theory, a yield curve that is flat means that A) bond purchasers expect interest rates to rise in the future. B) bond purchasers expect interest rates to stay the same. C) bond purchasers expect interest rates to fall in the future. D) the yield curve has nothing to do with […]
Date: September 10th, 2020
According to the liquidity premium theory of the term structure, a downward sloping yield curve indicates that short-term interest rates are expected to A) rise in the future. B) remain unchanged in the future. C) decline moderately in the future. D) decline sharply in the future. ANSWER D
Date: September 10th, 2020
To cut costs in the face of declining demand and increased competition, many fast food restaurants have focused on reducing: A) labor costs. B) utility costs. C) paper napkin costs. D) none of the above. ANSWER C
Date: September 10th, 2020
When the percentage change in quantity supplied is greater than the percentage change in price, supply is said to be elastic. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
The income generated from the sale of the goods and services produced in the economy and paid to the individuals and businesses who supply the factors of production is called: A) GDP. B) GNP. C) national income. D) NNP. ANSWER C
Date: September 10th, 2020
