Details of this Paper

BUS602 quiz help




Question 1 of 20 5.0 Points;Your current bank is paying 6.25% simple interest rate. You can move your savings account to Harris Bank that pays 6.25% compounded annually or to First Chicago bank paying 6% compounded semi-annually. To maximize your return you would choose;A. your current bank;B. Harris Bank;C. First Chicago bank;D. you are indifferent, because the effective interest rate for all three banks is the same;Question 2 of 20 5.0 Points;In general, the effective rate of interest on a discount loan; lower than that on standard loan; higher than that on a standard loan; identical to that on a standard loan;D. none of the above;Question 3 of 20 5.0 Points;Reasons we study finance include all of the following except;A. To make informed economic decisions;B. To make informed personal and business investment decisions;C. To make informed career decisions based on a basic understanding of business finance;D. To make informed medical decisions;E. all of the above about reasons to study finance.;Question 4 of 20 5.0 Points;A saver who chooses securities as a savings medium and desires maximum safety of principal buys;A. public utility stocks;B. corporate stocks;C. high-grade corporate bonds;D. government bonds;Question 5 of 20 5.0 Points;The Second Bank of the United States was created to;A. replace the First Bank of the United States;B. appease political interests;C. restore order to chaotic banking conditions;D. all the above;Question 6 of 20 5.0 Points;Which of the following statements are correct?;A. debit cards provide for the immediate direct transfer of deposit accounts;B. debit cards may be used for cash advances, even when there is not sufficient money in the account;C. debit cards may not be used to make cash withdrawals from automatic teller machines;D. all the above;E. none of the above;Question 7 of 20 5.0 Points;Briefly describe basic differences in how monetarists and Keynesians view the relationship between money supply and economic activity.;Question 8 of 20 5.0 Points;Which of the following financial institutions market ?seasoned? instruments and securities?;A. brokerage firms;B. finance companies;C. mortgage lenders;D. none of the above;Question 9 of 20 5.0 Points;If the interest rate is greater than 0%, then a dollar today is worth;A. more than a dollar tomorrow;B. the same as a dollar tomorrow;C. less than a dollar tomorrow;D. there is not sufficient information to tell;Question 10 of 20 5.0 Points;Open market operations differ from discounting operations in that they are;A. initiated by member depository institutions;B. designed to be of significance only to large city banks;C. initiated by the Federal Reserve;D. initiated by the U.S. Treasury;Question 11 of 20 5.0 Points;Briefly answer the question: ?What is finance??;Question 12 of 20 5.0 Points;In an inflationary period, interest rates have a tendency to;A. rise;B.fall;C. stay the same;D. act erratically;Question 13 of 20 5.0 Points;The M1 definition of the money supply includes which of the following items?;A. currency;B. demand deposits and other checkable deposits at depository institutions;C. travelers? checks;D. all of the above;Question 14 of 20 5.0 Points;A ____________ is a short-term debt instrument issued by commercial banks in denominations of $100,000 or more with typical maturities ranging from one month to one year that have an active secondary market that allows short-term investors to easily match their cash or liquidity needs when they arise.;A. negotiable certificate of deposit (NCD);B.A repurchase agreement;C. government bond;D. money market security;E. none of the above;Question 15 of 20 5.0 Points;If annual GDP is $100 billion and the MS is $20 billion, the velocity of money (VM) is ________.;A.2;B.5;C.20;D.50;E. none of the above;Question 16 of 20 5.0 Points;is the tendency of prices, aided by union-corporation contracts, to rise during economic expansions and resist declines during recessions.;A. Administrative inflation;B. Speculative inflation;C. Cost-push inflation;D. Demand-pull inflation;Question 17 of 20 5.0 Points;Finance has its origins in;A. economics and statistics;B.accounting and mathematics;C. management and operations;D. economics and accounting;Question 18 of 20 5.0 Points;Which of the following is not an asset of depository institutions?;A. cash;B. unsecured loans;C. time deposits;D.U.S. government securities;Question 19 of 20 5.0 Points;The _________________ is primarily responsible for the amount of money that is created, although most of the money is actually created by depository institutions.;A. Securities Exchange Commission;B. Federal Treasury;C. Federal Reserve System;D. Financial Asset Oversight Board;Question 20 of 20 5.0 Points;As interest rates fall, the prices of existing bonds will;A.rise;B. stay the same;C. fall;D. either a or b, depending on the state of the economy;E. none of the above


Paper#28913 | Written in 18-Jul-2015

Price : $42