Question 1

Gross domestic product is equal to the sum of all of the following except:

Accepted Answer

A)  personal consumption expenditures 
B)  net exports 
C)  government expenditures 
D)  personal savings in banks 
A)  personal consumption expenditures 
B)  net exports 
C)  government expenditures 
D)  personal savings in banks

Question 2

A saver who chooses securities as a savings medium and desires maximum safety of principal buys:

Accepted Answer

A)  public utility stocks 
B)  corporate stocks 
C)  high-grade corporate bonds 
D)  government bonds 
A)  public utility stocks 
B)  corporate stocks 
C)  high-grade corporate bonds 
D)  government bonds

Question 3

Most income for the Federal Government comes from:

Accepted Answer

A)  corporate income taxes 
B)  individual income taxes 
C)  social insurance receipts 
D)  foreign imports 
A)  corporate income taxes 
B)  individual income taxes 
C)  social insurance receipts 
D)  foreign imports

Question 4

If personal consumption expenditures are $6 billion, government purchases are $10 billion, gross private domestic investments are $4 billion and net exports are $negative 3 billion, then GDP is:

Accepted Answer

A)  $23 billion 
B)  $20 billion 
C)  $17 billion 
D)  $16 billion 
A)  $23 billion 
B)  $20 billion 
C)  $17 billion 
D)  $16 billion

Question 5

If individuals believe their income will decrease in the near future, they may _____________ their spending.

Accepted Answer

A)  eliminate 
B)  curtail 
C)  increase 
D)  double 
A)  eliminate 
B)  curtail 
C)  increase 
D)  double

Question 6

Which of the following is not a stage in the corporation cycle?

Accepted Answer

A)  Start-up stage 
B)  Capital formation stage 
C)  Rapid growth stage 
D)  Survival stage 
A)  Start-up stage 
B)  Capital formation stage 
C)  Rapid growth stage 
D)  Survival stage

Question 7

A derivative security is a financial contract that derives its value from a bond, stock, or other asset.

Accepted Answer

A) True 
 B)False

Question 8

Fixed rate mortgages often replaced adjustable rate mortgages just prior to the 2007 - 08 financial crisis.

Accepted Answer

A) True 
 B)False

Question 9

The third stage of financing for an entrepreneurial firm is called the recovery of investment stage.

Accepted Answer

A) True 
 B)False

Question 10

The life stages of an individual saver include all of the following except:

Accepted Answer

A)  the formative/education developing stage 
B)  the career earning/family creating stage 
C)  the wealth building stage 
D)  the tax minimizing stage 
A)  the formative/education developing stage 
B)  the career earning/family creating stage 
C)  the wealth building stage 
D)  the tax minimizing stage

Question 11

Which of the following is a savings surplus unit?

Accepted Answer

A)  businesses 
B)  government 
C)  individuals 
D)  foreign exporters 
A)  businesses 
B)  government 
C)  individuals 
D)  foreign exporters

Question 12

Net exports are exports of goods and services minus imports of goods and services.

Accepted Answer

A) True 
 B)False

Question 13

The largest proportion of government spending goes to national defense, veterans, and foreign affairs.

Accepted Answer

A) True 
 B)False

Question 14

Net exports are exports of goods and services plus imports of goods and services.

Accepted Answer

A) True 
 B)False

Question 15

Securitization is the process of insuring mortgage loans against default.

Accepted Answer

A) True 
 B)False

Question 16

Car payments are an example of contractual savings.

Accepted Answer

A) True 
 B)False

Question 17

A derivative security is a financial contract that derives its value from a collection of bonds.

Accepted Answer

A) True 
 B)False

Question 18

A mortgage with a constant interest rate with a constant periodic payment over the real estate loan's life.

Accepted Answer

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

Question 19

Fixed rate mortgages are also known as "prime mortgages."

Accepted Answer

A) True 
 B)False

Question 20

Personal consumption expenditures (PCE) does not include:

Accepted Answer

A)  individual expenditures for durable goods 
B)  individual expenditures for nondurable goods 
C)  individual expenditures for services 
D)  individual savings 
A)  individual expenditures for durable goods 
B)  individual expenditures for nondurable goods 
C)  individual expenditures for services 
D)  individual savings

Gross domestic product is equal to the sum of all of the following except:

A saver who chooses securities as a savings medium and desires maximum safety of principal buys:

Most income for the Federal Government comes from:

If personal consumption expenditures are $6 billion, government purchases are $10 billion, gross private domestic investments are $4 billion and net exports are $negative 3 billion, then GDP is:

If individuals believe their income will decrease in the near future, they may _____________ their spending.

Which of the following is not a stage in the corporation cycle?

A derivative security is a financial contract that derives its value from a bond, stock, or other asset.

Fixed rate mortgages often replaced adjustable rate mortgages just prior to the 2007 - 08 financial crisis.

The third stage of financing for an entrepreneurial firm is called the recovery of investment stage.

The life stages of an individual saver include all of the following except:

Which of the following is a savings surplus unit?

Net exports are exports of goods and services minus imports of goods and services.

The largest proportion of government spending goes to national defense, veterans, and foreign affairs.

Net exports are exports of goods and services plus imports of goods and services.

Securitization is the process of insuring mortgage loans against default.

Car payments are an example of contractual savings.

A derivative security is a financial contract that derives its value from a collection of bonds.

A mortgage with a constant interest rate with a constant periodic payment over the real estate loan's life.

Fixed rate mortgages are also known as "prime mortgages."

Personal consumption expenditures (PCE) does not include:

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

Gross domestic product is equal to the sum of all of the following except:

A saver who chooses securities as a savings medium and desires maximum safety of principal buys:

Most income for the Federal Government comes from:

If personal consumption expenditures are $6 billion, government purchases are $10 billion, gross private domestic investments are $4 billion and net exports are $negative 3 billion, then GDP is:

If individuals believe their income will decrease in the near future, they may _____________ their spending.

Which of the following is not a stage in the corporation cycle?

A derivative security is a financial contract that derives its value from a bond, stock, or other asset.

Fixed rate mortgages often replaced adjustable rate mortgages just prior to the 2007 - 08 financial crisis.

The third stage of financing for an entrepreneurial firm is called the recovery of investment stage.

The life stages of an individual saver include all of the following except:

Which of the following is a savings surplus unit?

Net exports are exports of goods and services minus imports of goods and services.

The largest proportion of government spending goes to national defense, veterans, and foreign affairs.

Net exports are exports of goods and services plus imports of goods and services.

Securitization is the process of insuring mortgage loans against default.

Car payments are an example of contractual savings.

A derivative security is a financial contract that derives its value from a collection of bonds.

A mortgage with a constant interest rate with a constant periodic payment over the real estate loan's life.

Fixed rate mortgages are also known as "prime mortgages."

Personal consumption expenditures (PCE) does not include:

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