The ratio of the regression coefficient to its standard error is called: A) t-statistic. B) F-statistic. C) partial F-statistic. D) coefficient of determination. ANSWER A
Date: September 10th, 2020
________ is a flow of earnings per unit of time. A) Income B) Money C) Wealth D) Currency ANSWER A
Date: September 10th, 2020
You have the following information on personal consumption expenditures (C) and disposable income (Yd): Year C Yd 1 300 400 2 500 700 a. Compute the marginal propensity to consume. b. Compute the amount of savings for years 1 and 2. c. Compute the marginal propensity to save. ANSWER a. MPC = ΔC/ΔYd = […]
Date: September 10th, 2020
An international organization created at the Bretton Woods conference in 1944 that helps coordinate international financial flows and can arrange short-term loans between countries is called the: A) World Bank. B) International Monetary Fund. C) U.S. Treasury. D) U.S. Agency for International Development. ANSWER B
Date: September 10th, 2020
The supply of a good is a function of price and the demand for the good. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
U.S. government bonds have no default risk because A) they are issued in strictly limited quantities. B) the federal government can increase taxes or print money to pay its obligations. C) they are backed with gold reserves. D) they can be exchanged for silver at any time. ANSWER B
Date: September 10th, 2020
The financial intermediaries that the average person interacts with most frequently are A) exchanges. B) over-the-counter markets. C) finance companies. D) banks. ANSWER D
Date: September 10th, 2020
What crucial role do financial intermediaries perform in an economy? What will be an ideal response? ANSWER Financial intermediaries borrow funds from people who have saved and make loans to other individuals and businesses and thus improve the efficiency of the economy.
Date: September 10th, 2020
Assets which include foreign currencies and gold certificates that central banks use to maintain exchange rates in a predetermined range are called: A) reserve assets. B) tangible assets. C) bank assets. D) discretionary assets. ANSWER A
Date: September 10th, 2020
Which of the following is NOT a financial institution? A) a life insurance company B) a pension fund C) a credit union D) a business college ANSWER D
Date: September 10th, 2020
