Of the following, the largest is A) money market deposit accounts. B) demand deposits. C) M1. D) M2. ANSWER D
Date: September 10th, 2020
If a bank has $100,000 of checkable deposits, a required reserve ratio of 20 percent, and it holds $40,000 in reserves, then the maximum deposit outflow it can sustain without altering its balance sheet is A) $30,000. B) $25,000. C) $20,000. D) $10,000. ANSWER B
Date: September 10th, 2020
According to the segmented markets theory of the term structure A) bonds of one maturity are close substitutes for bonds of other maturities, therefore, interest rates on bonds of different maturities move together over time. B) the interest rate for each maturity bond is determined by supply and demand for that maturity bond. C) investors’ […]
Date: September 10th, 2020
You can borrow $5000 to finance a new business venture. This new venture will generate annual earnings of $251. The maximum interest rate that you would pay on the borrowed funds and still increase your income is A) 25%. B) 12.5%. C) 10%. D) 5%. ANSWER D
Date: September 10th, 2020
McDonald’s partnership with Beijing’s Department of Agriculture provided: A) McDonald’s with subsidies , suppliers, and distributional channels. B) McDonald’s with just subsidies. C) McDonald’s with just distributional channels. D) all of the above. ANSWER A
Date: September 10th, 2020
The Federal Reserve Banks are ________ institutions since they are owned by the ________. A) quasi-public; private commercial banks in the district where the Reserve Bank is located B) public; private commercial banks in the district where the Reserve Bank is located C) quasi-public; Board of Governors D) public; Board of Governors ANSWER A
Date: September 10th, 2020
Using T-accounts show what happens to reserves at Security National Bank if one individual deposits $1000 in cash into her checking account and another individual withdraws $750 in cash from her checking account. What will be an ideal response? ANSWER Security National Bank Assets Liabilities Reserves +$250 Checkable deposits +$250
Date: September 10th, 2020
Spending on the structures, equipment, and software that provide the industrial capacity to produce goods and services for all sectors of the economy is called: A) inventory investment B) business fixed investment C) residential fixed investment D) consumption ANSWER B
Date: September 10th, 2020
There are 15 Federal Reserve District Banks. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Each Federal Reserve bank has nine directors. Of these ________ are appointed by the member banks and ________ are appointed by the Board of Governors. A) three; six B) four; five C) five; four D) six; three ANSWER D
Date: September 10th, 2020
