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
There are ________ members of the Board of Governors of the Federal Reserve System. A) 5 B) 7 C) 12 D) 19 ANSWER B
Date: September 10th, 2020
The M2 monetary aggregate contains everything that is in M1 plus other assets that are highly ________ (can be turned into cash quickly at very little cost). A) liquid B) stable C) consistent D) efficient ANSWER A
Date: September 10th, 2020
Economic profit is equal to the difference between: A) total revenue and the full opportunity cost of all the resources used in production. B) total revenue and implicit costs. C) accounting profit and explicit costs. D) implicit and explicit costs. ANSWER A
Date: September 10th, 2020
Distinguish between direct finance and indirect finance. Which of these is the most important source of funds for corporations in the United States? What will be an ideal response? ANSWER With direct finance, funds flow directly from the lender/saver to the borrower. With indirect finance, funds flow from the lender/saver to a financial intermediary […]
Date: September 10th, 2020
________ may antagonize customers and thus can be a very costly way of acquiring funds to meet an unexpected deposit outflow. A) Selling securities B) Selling loans C) Calling in loans D) Selling negotiable CDs ANSWER C
Date: September 10th, 2020
Which of the following is the best example of “depreciation”? A) An individual worker becoming tired at the end of an eight-hour work day. B) The notion that individuals obtain less utility from paying taxes than giving to charities. C) A truck used by a pizzeria to make deliveries is worth less at the end […]
Date: September 10th, 2020
