The phenomenon of foreign currency driving out local currencies as a means of payment and a savings vehicle is known as ________. A) seigniorage B) dollarization C) sterilization D) devaluation ANSWER Answer: B
Date: September 19th, 2020
What is the name of the unit of account created by the IMF which is sometimes used to denominate contracts? A) European currency unit B) special drawing right C) floating currencies D) basket of currencies ANSWER Answer: B
Date: September 19th, 2020
What is the marginal investment in accounts receivable under the proposed plan? (See Table 14.7) A) $1,234,375 B) $1,382,500 C) $1,567,300 D) $1,841,570 ANSWER A
Date: September 19th, 2020
When the central bank attempts to influence the supply of money in a country by the sale or purchase of government bonds, the practice is known as ________. A) open market operations B) a sterilized float C) a dirty float D) changing the required reserves ANSWER Answer: A
Date: September 19th, 2020
Which of the following would NOT be a major component of a country’s official reserves? A) foreign exchange B) IMF-related reserve assets C) gold D) government bonds ANSWER Answer: D
Date: September 19th, 2020
What is the name of the exchange rate system in which countries allow the value of their currency to be determined freely in the foreign exchange markets around the world without any government restrictions? A) European currency unit B) fixed currencies C) floating currencies D) dirty float currency ANSWER Answer: C
Date: September 19th, 2020
What is the name of the exchange rate system where the governments attempt to make sure the values of their currencies trade at particular values in the foreign exchange market, relative to another currency or a “basket” of currencies? A) European currency unit B) fixed currencies C) floating currencies D) dirty float currency […]
Date: September 19th, 2020
A decrease in collection efforts by a firm will result in ________ in sales volume, ________ in the investment in accounts receivable, ________ in bad debt expenses, and ________ in collection expenditures. A) an increase; an increase; an increase; a decrease B) an increase; a decrease; an increase; an increase C) an increase; a decrease; […]
Date: September 19th, 2020
What is the name of the value of the real resources that the central bank obtains through the creation of base money? A) seigniorage B) sterilized intervention C) dollarization D) target zone ANSWER Answer: A
Date: September 19th, 2020
An increase in accounts receivable turnover for a firm due to an increase in collection efforts will ________. A) decrease the firm’s marginal investments in accounts receivable B) increase the firm’s marginal investments in accounts receivable C) decrease the firm’s collection expense D) increase the firm’s bad debt expense ANSWER A
Date: September 19th, 2020
