Question 1

The major factors which influence the level of savings are the level of:

Accepted Answer

A)  income and the life stage of the individual saver 
B)  income, economic expectations, cyclical influence, and the life stage of the individual saver 
C)  income, interest rates, and the life stage cycle of the individual saver 
D)  income and interest rates 
A)  income and the life stage of the individual saver 
B)  income, economic expectations, cyclical influence, and the life stage of the individual saver 
C)  income, interest rates, and the life stage cycle of the individual saver 
D)  income and interest rates

Question 2

Adjustable rate mortgages typically adjust monthly.

Accepted Answer

A) True 
 B)False

Question 3

The capital account balance has a major impact on the balance of payments.

Accepted Answer

A) True 
 B)False

Question 4

Voluntary savings are savings accumulated on a regular schedule for a specified length of time by prior agreement.

Accepted Answer

A) True 
 B)False

Question 5

The largest category of federal budget outlays is from:

Accepted Answer

A)  national defense 
B)  Medicare and social security 
C)  Interest on the federal debt 
D)  international affairs 
A)  national defense 
B)  Medicare and social security 
C)  Interest on the federal debt 
D)  international affairs

Question 6

The federal debt of the United States is owned to a large extent by foreign institutions and individuals.

Accepted Answer

A) True 
 B)False

Question 7

In general, the savings rate in the United States has decreased during the past 40 years.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following usually does not influence personal choice of savings medium?

Accepted Answer

A)  Liquidity 
B)  Degree of Safety 
C)  Return 
D)  Income 
A)  Liquidity 
B)  Degree of Safety 
C)  Return 
D)  Income

Question 9

A home loan made to a borrower with a relatively low credit score indicating the likelihood that loan payments might be missed when due.

Accepted Answer

A)  Adjustable-rate mortgage 
B)  Prime mortgage 
C)  Suboptimal mortgage 
D)  Subprime mortgage 
A)  Adjustable-rate mortgage 
B)  Prime mortgage 
C)  Suboptimal mortgage 
D)  Subprime mortgage

Question 10

A mortgage with interest rate and periodic payments that vary with market interest rates over the real estate loan's life.

Accepted Answer

A)  Adjustable-rate mortgage 
B)  Flexible mortgage 
C)  Fixed-rate mortgage 
D)  Subprime mortgage 
A)  Adjustable-rate mortgage 
B)  Flexible mortgage 
C)  Fixed-rate mortgage 
D)  Subprime mortgage

Question 11

Which one the following four basic economic units consistently represents a savings surplus unit?

Accepted Answer

A)  individuals 
B)  business firms 
C)  financial intermediaries 
D)  governments 
A)  individuals 
B)  business firms 
C)  financial intermediaries 
D)  governments

Question 12

Credit scores range from about 500 to 700.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements is false?

Accepted Answer

A)  The process of channeling savings into investment through the use of a financial institution or intermediary results in no real economic value 
B)  During the early years of the history of the United States, foreigners purchased significant volumes of federal government securities. 
C)  Most funds raised in the credit sector are by households. 
D)  Consumer mortgages can be fixed rate or adjustable rate. 
A)  The process of channeling savings into investment through the use of a financial institution or intermediary results in no real economic value 
B)  During the early years of the history of the United States, foreigners purchased significant volumes of federal government securities. 
C)  Most funds raised in the credit sector are by households. 
D)  Consumer mortgages can be fixed rate or adjustable rate.

Question 14

Capital consumption adjustments are estimates of the "using up" of plant equipment assets for businesses.

Accepted Answer

A) True 
 B)False

Question 15

A car loan is a type of mortgage.

Accepted Answer

A) True 
 B)False

Question 16

An economic unit with income less than its expenses, taxes, and real asset investments.

Accepted Answer

A)  Savings deficit unit 
B)  Bankrupt unit 
C)  Savings surplus unit 
D)  Economic unit savings 
A)  Savings deficit unit 
B)  Bankrupt unit 
C)  Savings surplus unit 
D)  Economic unit savings

Question 17

If personal consumption expenditures are $1 billion, government purchases are $2 billion, gross private domestic investments are $4 billion and net exports are $5 billion, then GDP is:

Accepted Answer

A)  $12 billion 
B)  $8 billion 
C)  $7 billion 
D)  $2 billion 
A)  $12 billion 
B)  $8 billion 
C)  $7 billion 
D)  $2 billion

Question 18

When taxes and general revenues fail to meet expenditures, a budget deficit occurs.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following statements is false?

Accepted Answer

A)  Factors affecting the amount of savings include: levels of income, economic expectations, cyclical influences, and the life stage of the individual saver. 
B)  Gross savings are the profits remaining after tax, and in the case of corporations, after the payment of cash dividends to stockholders. 
C)  Voluntary savings are financial assets set aside for use in the future. 
D)  After the Civil War, the United States was able to generate sufficient capital to finance its expansion. 
A)  Factors affecting the amount of savings include: levels of income, economic expectations, cyclical influences, and the life stage of the individual saver. 
B)  Gross savings are the profits remaining after tax, and in the case of corporations, after the payment of cash dividends to stockholders. 
C)  Voluntary savings are financial assets set aside for use in the future. 
D)  After the Civil War, the United States was able to generate sufficient capital to finance its expansion.

Question 20

During the early years of the life stage of a typical corporation, the:

Accepted Answer

A)  volume of physical assets increases slowly 
B)  firm is unable to establish a strong position with respect to its financial assets 
C)  corporation is a heavy provider of financial assets 
D)  need for borrowed capital is small 
A)  volume of physical assets increases slowly 
B)  firm is unable to establish a strong position with respect to its financial assets 
C)  corporation is a heavy provider of financial assets 
D)  need for borrowed capital is small

The major factors which influence the level of savings are the level of:

Adjustable rate mortgages typically adjust monthly.

The capital account balance has a major impact on the balance of payments.

Voluntary savings are savings accumulated on a regular schedule for a specified length of time by prior agreement.

The largest category of federal budget outlays is from:

The federal debt of the United States is owned to a large extent by foreign institutions and individuals.

In general, the savings rate in the United States has decreased during the past 40 years.

Which of the following usually does not influence personal choice of savings medium?

A home loan made to a borrower with a relatively low credit score indicating the likelihood that loan payments might be missed when due.

A mortgage with interest rate and periodic payments that vary with market interest rates over the real estate loan's life.

Which one the following four basic economic units consistently represents a savings surplus unit?

Credit scores range from about 500 to 700.

Which of the following statements is false?

Capital consumption adjustments are estimates of the "using up" of plant equipment assets for businesses.

A car loan is a type of mortgage.

An economic unit with income less than its expenses, taxes, and real asset investments.

If personal consumption expenditures are $1 billion, government purchases are $2 billion, gross private domestic investments are $4 billion and net exports are $5 billion, then GDP is:

When taxes and general revenues fail to meet expenditures, a budget deficit occurs.

Which of the following statements is false?

During the early years of the life stage of a typical corporation, the:

The Financial Environment

Money and the Monetary System

Banks and Other Financial Institutions

Federal Reserve System

Policy Makers and the Money Supply

International Finance and Trade

Interest Rates

Time Value of Money

Bonds and Stocks: Characteristics and Valuations

Securities and Markets

Financial Return and Risk Concepts

Business Organization and Financial Data

Financial Analysis and Long-Term Financial Planning

Managing Working Capital

Short-Term Business Financing

Capital Budgeting Analysis

Capital Structure and the Cost of Capital

Filters

Exam 7: Savings and Investment Process

The major factors which influence the level of savings are the level of:

Adjustable rate mortgages typically adjust monthly.

The capital account balance has a major impact on the balance of payments.

Voluntary savings are savings accumulated on a regular schedule for a specified length of time by prior agreement.

The largest category of federal budget outlays is from:

The federal debt of the United States is owned to a large extent by foreign institutions and individuals.

In general, the savings rate in the United States has decreased during the past 40 years.

Which of the following usually does not influence personal choice of savings medium?

A home loan made to a borrower with a relatively low credit score indicating the likelihood that loan payments might be missed when due.

A mortgage with interest rate and periodic payments that vary with market interest rates over the real estate loan's life.

Which one the following four basic economic units consistently represents a savings surplus unit?

Credit scores range from about 500 to 700.

Which of the following statements is false?

Capital consumption adjustments are estimates of the "using up" of plant equipment assets for businesses.

A car loan is a type of mortgage.

An economic unit with income less than its expenses, taxes, and real asset investments.

If personal consumption expenditures are $1 billion, government purchases are $2 billion, gross private domestic investments are $4 billion and net exports are $5 billion, then GDP is:

When taxes and general revenues fail to meet expenditures, a budget deficit occurs.

Which of the following statements is false?

During the early years of the life stage of a typical corporation, the:

The Financial Environment

Money and the Monetary System

Banks and Other Financial Institutions

Federal Reserve System

Policy Makers and the Money Supply

International Finance and Trade

Interest Rates

Time Value of Money

Bonds and Stocks: Characteristics and Valuations

Securities and Markets

Financial Return and Risk Concepts

Business Organization and Financial Data

Financial Analysis and Long-Term Financial Planning

Managing Working Capital

Short-Term Business Financing

Capital Budgeting Analysis

Capital Structure and the Cost of Capital

Filters