Refer to Table 11.1. What is the value of personal consumption expenditures? A) $3,000. B) $1,000. C) $4,350. D) $2,350. ANSWER C
Date: September 10th, 2020
Securities are ________ for the person who buys them, but are ________ for the individual or firm that issues them. A) assets; liabilities B) liabilities; assets C) negotiable; nonnegotiable D) nonnegotiable; negotiable ANSWER A
Date: September 10th, 2020
Which of the following statements regarding historical costs is correct? A) Historical costs represent what the firm paid for an input when it was purchased, adjusted for inflation. B) Historical costs vary depending on the method of depreciation a firm uses. C) Historical costs are a good indicator of the current opportunity cost of a […]
Date: September 10th, 2020
Of all commercial banks, about ________ belong to the Federal Reserve System. A) 10% B) one half C) one third D) 90% ANSWER C
Date: September 10th, 2020
A bank with insufficient reserves can increase its reserves by A) lending federal funds. B) calling in loans. C) buying short-term Treasury securities. D) buying municipal bonds. ANSWER B
Date: September 10th, 2020
If an individual uses money from a demand deposit account to purchase a U.S. savings bond A) M1 decreases and M2 stays the same. B) M1 stays the same and M2 increases. C) M1 stays the same and M2 stays the same. D) M1 decreases and M2 decreases. ANSWER D
Date: September 10th, 2020
Real money supply expresses the money supply in terms of real goods and services. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
The larger firms in the red-meat industry have blunted the effects of competition by relying on product differentiation, which in effect, creates a downward-sloping demand curve for each firm’s product. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
If firms in a perfectly competitive industry produce an undifferentiated product, it is not possible to increase profits of the individual firms in the industry by increasing market demand for the product because of the large number of available substitutes. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Bankers’ concerns regarding the optimal mix of excess reserves, secondary reserves, borrowings from the Fed, and borrowings from other banks to deal with deposit outflows is an example of A) liability management. B) liquidity management. C) managing interest rate risk. D) managing credit risk. ANSWER B
Date: September 10th, 2020
