As of today, the most severe economic crisis to afflict the United States economy is considered to be A) the Savings and Loan Crisis of 1978-1982. B) the Great Recession of 2007-2009. C) the Reagan Tax Law Changes of 1985. D) the Great Depression of the 1930s. ANSWER D
Date: September 19th, 2020
Which of the following statements about the factors affecting automobile insurance rates is true? A) The cost of collision coverage increases as a car gets older. B) Because of high speeds in rural areas, rural drivers tend to pay more for auto insurance than city drivers pay for auto insurance. C) Young unmarried male drivers […]
Date: September 19th, 2020
Profit maximization does not adequately describe the goal of the firm because: A) profit maximization does not require the consideration of risk. B) profit maximization often has a short-term focus. C) maximization of dividend payout ratio is a better description of the goal of the firm. D) Both A and B ANSWER D
Date: September 19th, 2020
Due to strict stock market controls, the most a stock’s value can drop in one trading day is 5%. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Which of the following statements about shopping for auto insurance is true? A) Adequate physical damage insurance on your auto is the most important consideration. B) Consideration should be given to dropping liability coverage if you drive an older car with a low market value. C) To obtain the lowest premium, an applicant should review […]
Date: September 19th, 2020
You plan to go to Asia to visit friends in three years. The trip is expected to cost a total of $10,000 at that time. Your parents have deposited $5,000 for you in a Certificate of Deposit paying 6% interest annually, maturing three years from now. Uncle Lee has agreed to pay for all remaining […]
Date: September 19th, 2020
How managers choose to finance the business does not affect the rate of return to shareholders because the rate of return is based on how the company uses the assets it has, not whether or not they paid for the assets with debt or equity. Indicate whether the statement is true or false […]
Date: September 19th, 2020
The need for extensive regulation of investment banking firms is limited due to the highly competitive nature of that industry. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
How much money do I need to place into a bank account that pays a 1.08% rate in order to have $500 at the end of 7 years? A) $629.51 B) $463.78 C) $751.81 D) $332.54 ANSWER B
Date: September 19th, 2020
How much money must be put into a bank account yielding 6.42% (compounded annually) in order to have $1,671 at the end of 11 years (round to nearest $1)? A) $798 B) $921 C) $886 D) $843 ANSWER D
Date: September 19th, 2020
