Question 1

Income to the owners of commercial real estate is in the form of:

Accepted Answer

A)  interest. 
B)  dividends. 
C)  transfer payments. 
D)  rent and profit from selling the property at a price higher than its purchase price. 
A)  interest. 
B)  dividends. 
C)  transfer payments. 
D)  rent and profit from selling the property at a price higher than its purchase price.

Question 2

An expectation that perceived business opportunities will increase will generally cause a(n) _____ for loanable funds.

Accepted Answer

A)  shift to the left in the demand curve 
B)  movement along the demand curve 
C)  increase in the demand 
D)  decrease in the demand 
A)  shift to the left in the demand curve 
B)  movement along the demand curve 
C)  increase in the demand 
D)  decrease in the demand

Question 3

Which asset is the LEAST liquid?

Accepted Answer

A)  cash 
B)  checking account balance 
C)  corporate bond 
D)  ownership of one fourth of a privately held company 
A)  cash 
B)  checking account balance 
C)  corporate bond 
D)  ownership of one fourth of a privately held company

Question 4

Which statement is the MOST accurate?

Accepted Answer

A)  Deficits increase economic growth. 
B)  Deficits decrease economic growth. 
C)  Deficits do not affect economic growth. 
D)  We cannot unambiguously say whether government spending that increases deficits lowers or increases economic growth. 
A)  Deficits increase economic growth. 
B)  Deficits decrease economic growth. 
C)  Deficits do not affect economic growth. 
D)  We cannot unambiguously say whether government spending that increases deficits lowers or increases economic growth.

Question 5

The primary purpose of financial intermediaries is to redistribute wealth by implementing a progressive income tax.

Accepted Answer

A) True 
 B)False

Question 6

Use the following to answer questions:  
-(Table: Investment Spending, Private Spending, and Capital Inflows) Use Table: Investment Spending, Private Spending, and Capital Inflows. Northlandia has a _____, while Southlandia has a _____.

Accepted Answer

A)  balanced budget; budget deficit 
B)  budget deficit; balanced budget 
C)  budget surplus; balanced budget 
D)  balanced budget; balanced budget 
A)  balanced budget; budget deficit 
B)  budget deficit; balanced budget 
C)  budget surplus; balanced budget 
D)  balanced budget; balanced budget

Question 7

Use the following to answer questions:  
-(Table: National Income Accounts) Use Table: National Income Accounts. The value of national savings is:

Accepted Answer

A)  $15.9 trillion. 
B)  $4.9 trillion. 
C)  $2.1 trillion. 
D)  $1.6 trillion. 
A)  $15.9 trillion. 
B)  $4.9 trillion. 
C)  $2.1 trillion. 
D)  $1.6 trillion.

Question 8

Compared with individual loans, loan-backed securities provide _____diversification and _____ liquidity than individual loans.

Accepted Answer

A)  less; less 
B)  more; more 
C)  less; more 
D)  more; less 
A)  less; less 
B)  more; more 
C)  less; more 
D)  more; less

Question 9

If a country's capital inflow exceeds outflow, then foreigners are contributing to the domestic country's investment spending.

Accepted Answer

A) True 
 B)False

Question 10

A life insurance company is a financial intermediary that sets up a stock portfolio of shares of companies and then sells shares of the stock portfolio to investors.

Accepted Answer

A) True 
 B)False

Question 11

Capital inflow into a country is associated with:

Accepted Answer

A)  imports exceeding exports. 
B)  a small amount of funds available for domestic investment. 
C)  imports equaling exports. 
D)  exports exceeding imports. 
A)  imports exceeding exports. 
B)  a small amount of funds available for domestic investment. 
C)  imports equaling exports. 
D)  exports exceeding imports.

Question 12

Life insurance companies are financial intermediaries that sell policies to savers and guarantee a payment to the policyholder's beneficiaries when the policyholder dies.

Accepted Answer

A) True 
 B)False

Question 13

Use the following to answer questions:  
-(Figure: The Market for Loanable Funds II) Use Figure: The Market for Loanable Funds II. If the interest rate is higher than _____%, the quantity supplied of loanable funds will be the quantity of loanable funds demanded.

Accepted Answer

A)  8; greater than 
B)  8; less than 
C)  8; equal to 
D)  10; less than 
A)  8; greater than 
B)  8; less than 
C)  8; equal to 
D)  10; less than

Question 14

Assuming a positive interest rate, the dollar amount of a future payment is:

Accepted Answer

A)  exactly the same as its present value. 
B)  approximately the same as its present value. 
C)  less than its present value. 
D)  more than its present value. 
A)  exactly the same as its present value. 
B)  approximately the same as its present value. 
C)  less than its present value. 
D)  more than its present value.

Question 15

When households invest their wealth in financial markets, they purchase financial assets.

Accepted Answer

A) True 
 B)False

Income to the owners of commercial real estate is in the form of:

An expectation that perceived business opportunities will increase will generally cause a(n) _____ for loanable funds.

Which asset is the LEAST liquid?

Which statement is the MOST accurate?

The primary purpose of financial intermediaries is to redistribute wealth by implementing a progressive income tax.

Use the following to answer questions: -(Table: Investment Spending, Private Spending, and Capital Inflows) Use Table: Investment Spending, Private Spending, and Capital Inflows. Northlandia has a _, while Southlandia has a _.

Use the following to answer questions: -(Table: National Income Accounts) Use Table: National Income Accounts. The value of national savings is:

Compared with individual loans, loan-backed securities provide _diversification and _ liquidity than individual loans.

If a country's capital inflow exceeds outflow, then foreigners are contributing to the domestic country's investment spending.

A life insurance company is a financial intermediary that sets up a stock portfolio of shares of companies and then sells shares of the stock portfolio to investors.

Capital inflow into a country is associated with:

Life insurance companies are financial intermediaries that sell policies to savers and guarantee a payment to the policyholder's beneficiaries when the policyholder dies.

Use the following to answer questions: -(Figure: The Market for Loanable Funds II) Use Figure: The Market for Loanable Funds II. If the interest rate is higher than _____%, the quantity supplied of loanable funds will be the quantity of loanable funds demanded.

Assuming a positive interest rate, the dollar amount of a future payment is:

When households invest their wealth in financial markets, they purchase financial assets.

First Principles

Economic Models: Trade-Offs and Trade

Supply and Demand

Price Controls and Quotas: Meddling With Markets

International Trade

Macroeconomics: the Big Picture

GDP and the CPI: Tracking the Macroeconomy

Unemployment and Inflation

Long-Run Economic Growth

Income and Expenditure

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Macroeconomics: Events and Ideas

International Macroeconomics

Filters

Exam 10: Savings, Investment Spending, and the Financial Syst

Income to the owners of commercial real estate is in the form of:

An expectation that perceived business opportunities will increase will generally cause a(n) _____ for loanable funds.

Which asset is the LEAST liquid?

Which statement is the MOST accurate?

The primary purpose of financial intermediaries is to redistribute wealth by implementing a progressive income tax.

Use the following to answer questions: -(Table: Investment Spending, Private Spending, and Capital Inflows) Use Table: Investment Spending, Private Spending, and Capital Inflows. Northlandia has a _____, while Southlandia has a _____.

Use the following to answer questions: -(Table: National Income Accounts) Use Table: National Income Accounts. The value of national savings is:

Compared with individual loans, loan-backed securities provide _____diversification and _____ liquidity than individual loans.

If a country's capital inflow exceeds outflow, then foreigners are contributing to the domestic country's investment spending.

A life insurance company is a financial intermediary that sets up a stock portfolio of shares of companies and then sells shares of the stock portfolio to investors.

Capital inflow into a country is associated with:

Life insurance companies are financial intermediaries that sell policies to savers and guarantee a payment to the policyholder's beneficiaries when the policyholder dies.

Use the following to answer questions: -(Figure: The Market for Loanable Funds II) Use Figure: The Market for Loanable Funds II. If the interest rate is higher than _____%, the quantity supplied of loanable funds will be the quantity of loanable funds demanded.

Assuming a positive interest rate, the dollar amount of a future payment is:

When households invest their wealth in financial markets, they purchase financial assets.

First Principles

Economic Models: Trade-Offs and Trade

Supply and Demand

Price Controls and Quotas: Meddling With Markets

International Trade

Macroeconomics: the Big Picture

GDP and the CPI: Tracking the Macroeconomy

Unemployment and Inflation

Long-Run Economic Growth

Income and Expenditure

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Macroeconomics: Events and Ideas

International Macroeconomics

Filters

Use the following to answer questions: -(Table: Investment Spending, Private Spending, and Capital Inflows) Use Table: Investment Spending, Private Spending, and Capital Inflows. Northlandia has a _, while Southlandia has a _.

Compared with individual loans, loan-backed securities provide _diversification and _ liquidity than individual loans.