Question 1

The primary factors that influence the amount of savings in any given period include all of the following except:

Accepted Answer

A)  levels of income 
B)  economic expectations 
C)  cyclical influences 
D)  all of the above are factors that influence savings 
A)  levels of income 
B)  economic expectations 
C)  cyclical influences 
D)  all of the above are factors that influence savings

Question 2

If the imports of goods and services exceed exports, GDP will be higher.

Accepted Answer

A) True 
 B)False

Question 3

Savings are impacted only by cyclical movements in the economy.

Accepted Answer

A) True 
 B)False

Question 4

Savings surplus occurs when all of an economic unit's income is not consumed, but held in the form of cash and other financial assets.

Accepted Answer

A) True 
 B)False

Question 5

The financial account is a summary of the fl ow of funds between one country and all other countries involving foreign investments in fixed assets and financial assets during a specified time period.

Accepted Answer

A) True 
 B)False

Question 6

Corporate saving for short-term working capital purposes is the most important reason for businesses accumulating financial assets.

Accepted Answer

A) True 
 B)False

Question 7

The president sets federal statutory debt limits that restrict the maximum amount of national debt that can be outstanding.

Accepted Answer

A) True 
 B)False

Question 8

Dissaving occurs when savings are transferred out of long-term savings and into short-term savings.

Accepted Answer

A) True 
 B)False

Question 9

It is from individuals that most financial intermediaries accumulate capital.

Accepted Answer

A) True 
 B)False

Question 10

Municipal bonds can only be issued by cities.

Accepted Answer

A) True 
 B)False

Question 11

Developments in the mortgage markets were major contributors to the severity of the 2007- 08 financial crisis.

Accepted Answer

A) True 
 B)False

Question 12

Direct payments to individuals from the Federal government do not include:

Accepted Answer

A)  Social Security payments. 
B)  Medicare payments 
C)  health expenditures 
D)  public transportation subsidies 
A)  Social Security payments. 
B)  Medicare payments 
C)  health expenditures 
D)  public transportation subsidies

Question 13

Which of the following sources of savings is consistently the largest on an annual basis?

Accepted Answer

A)  personal savings 
B)  undistributed corporate profits 
C)  federal, state, and local government surpluses 
D)  capital consumption allowances 
A)  personal savings 
B)  undistributed corporate profits 
C)  federal, state, and local government surpluses 
D)  capital consumption allowances

Question 14

The capital account is a summary of the flow of funds between one country and all other countries involving the transfer of financial assets across country borders during a specified time period.

Accepted Answer

A) True 
 B)False

Question 15

The Senate votes on whether to impeach an official.

Accepted Answer

A) True 
 B)False

Question 16

In general, during the business cycle, when economic activity is peaking:

Accepted Answer

A)  interest rates begin to go lower 
B)  unemployment levels are high 
C)  inflation begins to edge higher 
D)  inflation goes down 
A)  interest rates begin to go lower 
B)  unemployment levels are high 
C)  inflation begins to edge higher 
D)  inflation goes down

Question 17

Capital consumption adjustments are estimates of depreciation of plant and equipment assets for business purposes.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is not a stage in the individual savings life cycle?

Accepted Answer

A)  Career starting/family creating 
B)  Formative/education developing 
C)  Death planning 
D)  Retirement enjoying 
A)  Career starting/family creating 
B)  Formative/education developing 
C)  Death planning 
D)  Retirement enjoying

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Early developments in transportation were ultimately financed by:

Accepted Answer

A)  private promoters 
B)  current government revenues 
C)  savings of individuals 
D)  foreign securities 
A)  private promoters 
B)  current government revenues 
C)  savings of individuals 
D)  foreign securities

The primary factors that influence the amount of savings in any given period include all of the following except:

If the imports of goods and services exceed exports, GDP will be higher.

Savings are impacted only by cyclical movements in the economy.

Savings surplus occurs when all of an economic unit's income is not consumed, but held in the form of cash and other financial assets.

The financial account is a summary of the fl ow of funds between one country and all other countries involving foreign investments in fixed assets and financial assets during a specified time period.

Corporate saving for short-term working capital purposes is the most important reason for businesses accumulating financial assets.

The president sets federal statutory debt limits that restrict the maximum amount of national debt that can be outstanding.

Dissaving occurs when savings are transferred out of long-term savings and into short-term savings.

It is from individuals that most financial intermediaries accumulate capital.

Municipal bonds can only be issued by cities.

Developments in the mortgage markets were major contributors to the severity of the 2007- 08 financial crisis.

Direct payments to individuals from the Federal government do not include:

Which of the following sources of savings is consistently the largest on an annual basis?

The capital account is a summary of the flow of funds between one country and all other countries involving the transfer of financial assets across country borders during a specified time period.

The Senate votes on whether to impeach an official.

In general, during the business cycle, when economic activity is peaking:

Capital consumption adjustments are estimates of depreciation of plant and equipment assets for business purposes.

Which of the following is not a stage in the individual savings life cycle?

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

Early developments in transportation were ultimately financed by:

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 primary factors that influence the amount of savings in any given period include all of the following except:

If the imports of goods and services exceed exports, GDP will be higher.

Savings are impacted only by cyclical movements in the economy.

Savings surplus occurs when all of an economic unit's income is not consumed, but held in the form of cash and other financial assets.

The financial account is a summary of the fl ow of funds between one country and all other countries involving foreign investments in fixed assets and financial assets during a specified time period.

Corporate saving for short-term working capital purposes is the most important reason for businesses accumulating financial assets.

The president sets federal statutory debt limits that restrict the maximum amount of national debt that can be outstanding.

Dissaving occurs when savings are transferred out of long-term savings and into short-term savings.

It is from individuals that most financial intermediaries accumulate capital.

Municipal bonds can only be issued by cities.

Developments in the mortgage markets were major contributors to the severity of the 2007- 08 financial crisis.

Direct payments to individuals from the Federal government do not include:

Which of the following sources of savings is consistently the largest on an annual basis?

The capital account is a summary of the flow of funds between one country and all other countries involving the transfer of financial assets across country borders during a specified time period.

The Senate votes on whether to impeach an official.

In general, during the business cycle, when economic activity is peaking:

Capital consumption adjustments are estimates of depreciation of plant and equipment assets for business purposes.

Which of the following is not a stage in the individual savings life cycle?

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

Early developments in transportation were ultimately financed by:

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