When you deposit a $50 bill in the Security Pacific National Bank A) its liabilities decrease by $50. B) its assets increase by $50. C) its reserves decrease by $50. D) its cash items in the process of collection increase by $50. ANSWER B
Date: September 10th, 2020
A perfectly competitive firm will earn a positive economic profit so long as price is greater than average total cost at the profit-maximizing level of output. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
What will a U.S. corporation do if it believes that the dollar will continue to appreciate when it changes foreign earnings back into dollars? What will be an ideal response? ANSWER The corporation would purchase a futures contract or hedge that allows it to lock into an exchange rate beforehand, so that the company […]
Date: September 10th, 2020
Defining money becomes ________ difficult as the pace of financial innovation ________. A) less; quickens B) more; quickens C) more; slows D) more; stops ANSWER B
Date: September 10th, 2020
The amount of output a firm can produce with a given quantity of fixed and variable inputs is called: A) total product. B) average variable product. C) marginal product. D) total fixed product. ANSWER A
Date: September 10th, 2020
Dodd-Frank addressed many of the issues that led to the financial crisis. Which of the following was NOT addressed by Dodd-Frank regulations? A) stricter consumer protection laws B) privately owned, government-sponsored enterprises (GSEs) such as Fannie mae and Freddie Mac C) resolution authority over the large financial institutions D) higher requirements on firms dealing in […]
Date: September 10th, 2020
If real GDP grows from $10 trillion in 2002 to $10.5 trillion in 2003, the growth rate for real GDP is A) 5%. B) 10%. C) 50%. D) 0.5%. ANSWER A
Date: September 10th, 2020
When yield curves are downward sloping A) long-term interest rates are above short-term interest rates. B) short-term interest rates are above long-term interest rates. C) short-term interest rates are about the same as long-term interest rates. D) medium-term interest rates are above both short-term and long-term interest rates. ANSWER B
Date: September 10th, 2020
When it became known in 1997 that the Thai government had insufficient foreign exchange reserves to maintain the exchange rate, how did currency speculators respond? What policy did the IMF suggest? What will be an ideal response? ANSWER Currency speculators began massive selling of the Thai currency, baht, which in turn depreciated further. The […]
Date: September 10th, 2020
Monetary aggregates are A) measures of the money supply reported by the Federal Reserve. B) measures of the wealth of individuals. C) never redefined since “money” never changes. D) reported by the Treasury Department annually. ANSWER A
Date: September 10th, 2020
