Secondary reserves include A) deposits at Federal Reserve Banks. B) deposits at other large banks. C) short-term U.S. government securities. D) state and local government securities. ANSWER C
Date: September 10th, 2020
The text lists all of the following as outcomes of McDonald’s experimental adoption of remote order taking except: A) a decrease in accuracy in filling orders. B) increased speed at the drive through window. C) an increase in the costs associated with the drive-through portion of McDonald’s business. D) employee dissatisfaction with constant monitoring and […]
Date: September 10th, 2020
When the total value of final goods and services is calculated using current prices, the resulting measure is referred to as A) real GDP. B) the GDP deflator. C) nominal GDP. D) the index of leading indicators. ANSWER C
Date: September 10th, 2020
Under a fixed exchange rate system, to prevent the depreciation of the dollar as a result of a balance of payments deficit, the Fed will increase the demand for dollars by supplying a foreign currency from its reserve assets. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
The government passed the Economic Recovery Act in October 2008 to prevent the financial crisis from continuing to worsen. A controversial component of this act was the A) temporary decrease in the federal deposit insurance limit. B) sale of new subprime mortgage assets. C) borrowing of $150 million from AIG. D) Troubled Asset Relief Program […]
Date: September 10th, 2020
Everything else held constant, if income tax rates were lowered, then A) the interest rate on municipal bonds would fall. B) the interest rate on Treasury bonds would rise. C) the interest rate on municipal bonds would rise. D) the price of Treasury bonds would fall. ANSWER C
Date: September 10th, 2020
Which of the following is not included in GDP? A) Unpaid maintenance of your house by your spouse. B) Services such as those provided by lawyers and dentists. C) The estimated rental (imputed) value of owner-occupied housing. D) Production by foreign citizens in the U.S. ANSWER A
Date: September 10th, 2020
Which of the following bank assets is the most liquid? A) consumer loans B) reserves C) state and local government securities D) U.S. government securities ANSWER B
Date: September 10th, 2020
Which of the following is not a characteristic of the broiler chicken industry? A) A significant degree of industry concentration, with the four largest firms producing 40 percent of the industry’s output. B) A significant degree of real and subjective product differentiation. C) An inability of individual firms to have any influence market price. D) […]
Date: September 10th, 2020
Which investment bank filed for bankruptcy on September 15, 2008 making it the largest bankruptcy filing in U.S. history? A) Lehman Brothers B) Merrill Lynch C) Bear Stearns D) Goldman Sachs ANSWER A
Date: September 10th, 2020
