Capital inflows occur if: A) domestic interest rates are higher than foreign interest rates. B) domestic interest rates are lower than foreign interest rates. C) domestic and foreign interest rates are the same. D) none of the above. ANSWER A
Date: September 10th, 2020
Increased profits provide more internal funds to finance capital investments and a major factor in lenders’ and investors’ decisions to provide external funds to the firm. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
When I purchase a corporate ________, I am lending the corporation funds for a specific time. When I purchase a corporation’s ________, I become an owner in the corporation. A) bond; stock B) stock; bond C) stock; debt security D) bond; debt security ANSWER A
Date: September 10th, 2020
On ________, October 19, 1987, the stock market experienced its worst one-day drop in its entire history with the DJIA falling by 22%. A) “Terrible Tuesday” B) “Woeful Wednesday” C) “Freaky Friday” D) “Black Monday” ANSWER D
Date: September 10th, 2020
In the foreign exchange market, the quantity U.S. dollars demanded is a function of: A) the amount of imports and the level of capital outflows. B) the amount of exports and the level of capital outflows. C) the amount of exports and the level of capital inflows. D) none of the above. ANSWER C
Date: September 10th, 2020
What are the two primary factors that influence a firm manager’s choice between a labor-intensive and a capital-intensive method of production? How does each factor influence the manager’s choice. What will be an ideal response? ANSWER The two primary factors are the technology of the production process and the prices of the inputs of […]
Date: September 10th, 2020
A firm’s investment expenditures are positively related to market interest rates. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
A share of common stock is a claim on a corporation’s A) debt. B) liabilities. C) expenses. D) earnings and assets. ANSWER D
Date: September 10th, 2020
In which of the following situations would reliance on expert opinion as a basis for a managerial decision be most preferred? A) When the product can be packaged with a variety of price and quality combinations. B) When the business in question serves as a supplier of inputs to other businesses, especially in multi-product situations […]
Date: September 10th, 2020
In the run up to the war in Iraq that began in 2003, one of the many concerns raised was that a war could result in a decrease in the supply of oil. At the same time, the U.S. economy was having a hard time recovering from the recession of 2001 and, as a result, […]
Date: September 10th, 2020
