Question 1

Which of the following, if True, would strengthen the case for Munschausen's seeking to acquire capital by debt financing?

Accepted Answer

A)  Munschausen will have very slim profit margins in its international sales. 
B)  Munschausen will hire many new salespeople to work internationally. 
C)  Munschausen will have a steady stream of revenue from its international sales. 
D)  Munschausen will be launching several new product lines soon. 
E)  Munschausen will have to specially train its employees to work internationally. 
A)  Munschausen will have very slim profit margins in its international sales. 
B)  Munschausen will hire many new salespeople to work internationally. 
C)  Munschausen will have a steady stream of revenue from its international sales. 
D)  Munschausen will be launching several new product lines soon. 
E)  Munschausen will have to specially train its employees to work internationally. C

Question 2

Which of the following federal laws made transactions between banks significantly more efficient?

Accepted Answer

A)  the Check Clearing for the 21st Century Act 
B)  the Bank Secrecy Act 
C)  the USA Patriot Act 
D)  the Federal Reserve Act 
E)  the Economic Emergency Recovery Act 
A)  the Check Clearing for the 21st Century Act 
B)  the Bank Secrecy Act 
C)  the USA Patriot Act 
D)  the Federal Reserve Act 
E)  the Economic Emergency Recovery Act A

Question 3

What is the difference between a public pension fund and a private pension fund?

Accepted Answer

A public pension fund includes Social Security and nearly $3 trillion in retirement programs for state and local government employees. In contrast, a private pension fund is operated by employers, unions, and other private groups.
Explanation:A pension fund is a pool of funds that is managed to provide retirement income for its members. Private pension funds cover about 43 million people and have total assets of $13 trillion, down from $15 trillion before the recent recession.

Question 4

When buying from a supplier in France, LTD, based in Cleveland, Ohio, has arranged for its bank to pay the supplier the cost of the desired material when it has passed customs in the United States. Which of the following terms is this type of bank promise called?

Accepted Answer

A)  banker's acceptance 
B)  bank trust service 
C)  certified check 
D)  letter of credit 
E)  currency exchange agreement 
A)  banker's acceptance 
B)  bank trust service 
C)  certified check 
D)  letter of credit 
E)  currency exchange agreement

Question 5

The reason why a savings account is not considered a component of the M-1 money supply is that it bears interest.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following financial institutions was taken over by the Federal House Finance Agency in 2008 as a part of the Emergency Economic Recovery Act?

Accepted Answer

A)  Lehman Brothers Holdings 
B)  Bear Stearns Companies 
C)  Federal Home Loan Mortgage Corporation 
D)  Federal Home Loan Banks System 
E)  Federal Agricultural Mortgage Corporation 
A)  Lehman Brothers Holdings 
B)  Bear Stearns Companies 
C)  Federal Home Loan Mortgage Corporation 
D)  Federal Home Loan Banks System 
E)  Federal Agricultural Mortgage Corporation

Question 7

Due to privacy issues, anti-terrorist policies enacted in the early 2000s have had few significant repercussions on banking practices.

Accepted Answer

A) True 
 B)False

Question 8

At any given time, there may be up to 15 different discount rates set by the Federal Reserve System for loaning money to commercial banks.

Accepted Answer

A) True 
 B)False

Question 9

In international payments, equal money inflows and outflows can result in no money being transferred between countries.

Accepted Answer

A) True 
 B)False

Question 10

Explain the need for requiring banks to be able to lend out only 90 percent of its deposit funds.

Accepted Answer

If banks were allowed to lend out of all

Question 11

Which of the following, if True, would weaken the case for Munschausen's seeking to acquire capital by equity financing?

Accepted Answer

A)  The equity capital market in Europe is currently very strong. 
B)  Equity financiers expect a consistent return on their investments. 
C)  Many of the companies in Germany get financing from equity capital. 
D)  Only the largest companies are listed on Germany's public stock exchange. 
E)  Most of the companies in Germany are listed on its stock exchange. 
A)  The equity capital market in Europe is currently very strong. 
B)  Equity financiers expect a consistent return on their investments. 
C)  Many of the companies in Germany get financing from equity capital. 
D)  Only the largest companies are listed on Germany's public stock exchange. 
E)  Most of the companies in Germany are listed on its stock exchange.

Question 12

What happens to demand and price during times of inflation?

Accepted Answer

Demand for goods and services increases,

Question 13

Suppose a list of all American deposit institutions were created and a name chosen randomly from this list. Which of the following would the chosen institution most likely be?

Accepted Answer

A)  a commercial bank 
B)  a savings institution 
C)  a savings and loan association 
D)  a mutual savings bank 
E)  a credit union 
A)  a commercial bank 
B)  a savings institution 
C)  a savings and loan association 
D)  a mutual savings bank 
E)  a credit union

Question 14

Money frees society from a system of barter. In doing so, money is performing which of the following functions?

Accepted Answer

A)  store of value 
B)  measure of worth 
C)  unit of account 
D)  determination factor 
E)  medium of exchange 
A)  store of value 
B)  measure of worth 
C)  unit of account 
D)  determination factor 
E)  medium of exchange

Question 15

Gizmo's marketing director argues that because the global economy is interconnected, if Gizmo continues to be profitable in the United States, it should be able to invest that money to do well internationally. Which of the following, if True, would most weaken her argument?

Accepted Answer

A)  Gizmo's existing products can be used in other countries. 
B)  The currency exchange rate between countries can fluctuate. 
C)  Current Gizmo employees will need some cultural training to do business effectively in other countries. 
D)  Investors will not be willing to put money into Gizmo's foreign business expansion without a business plan. 
E)  Marketing strategies that are successful in the United States are not always successful overseas. 
A)  Gizmo's existing products can be used in other countries. 
B)  The currency exchange rate between countries can fluctuate. 
C)  Current Gizmo employees will need some cultural training to do business effectively in other countries. 
D)  Investors will not be willing to put money into Gizmo's foreign business expansion without a business plan. 
E)  Marketing strategies that are successful in the United States are not always successful overseas.

Question 16

Any object can serve as money if it is portable, divisible, durable, and stable.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is NOT part of the M-1 supply?

Accepted Answer

A)  currency at hand 
B)  currency amount of written checks 
C)  currency available through a debit card 
D)  currency in checking accounts 
E)  currency value of time deposits 
A)  currency at hand 
B)  currency amount of written checks 
C)  currency available through a debit card 
D)  currency in checking accounts 
E)  currency value of time deposits

Question 18

In order to save money on transactional costs, the U.S. Treasury is moving to electronic fund transfers for payments rather than issuing checks.

Accepted Answer

A) True 
 B)False

Question 19

Individual retirement accounts can be opened only by self-employed people such as doctors, small business owners, and consultants.

Accepted Answer

A) True 
 B)False

Question 20

Regarding the international payments process, which statement is True?

Accepted Answer

A)  In international trade, money will flow from the country with the strongest currency to that of the weakest. 
B)  The World Bank monitors the trade of its members to insure that money is flowing properly between the various countries. 
C)  The World Bank monitors the national banks of its members to insure that money is flowing properly between the various countries. 
D)  By international law, international trade must involve money flowing between two countries. 
E)  Money does not actually have to flow between two countries. 
A)  In international trade, money will flow from the country with the strongest currency to that of the weakest. 
B)  The World Bank monitors the trade of its members to insure that money is flowing properly between the various countries. 
C)  The World Bank monitors the national banks of its members to insure that money is flowing properly between the various countries. 
D)  By international law, international trade must involve money flowing between two countries. 
E)  Money does not actually have to flow between two countries.

Which of the following, if True, would strengthen the case for Munschausen's seeking to acquire capital by debt financing?

Which of the following federal laws made transactions between banks significantly more efficient?

What is the difference between a public pension fund and a private pension fund?

When buying from a supplier in France, LTD, based in Cleveland, Ohio, has arranged for its bank to pay the supplier the cost of the desired material when it has passed customs in the United States. Which of the following terms is this type of bank promise called?

The reason why a savings account is not considered a component of the M-1 money supply is that it bears interest.

Which of the following financial institutions was taken over by the Federal House Finance Agency in 2008 as a part of the Emergency Economic Recovery Act?

Due to privacy issues, anti-terrorist policies enacted in the early 2000s have had few significant repercussions on banking practices.

At any given time, there may be up to 15 different discount rates set by the Federal Reserve System for loaning money to commercial banks.

In international payments, equal money inflows and outflows can result in no money being transferred between countries.

Explain the need for requiring banks to be able to lend out only 90 percent of its deposit funds.

Which of the following, if True, would weaken the case for Munschausen's seeking to acquire capital by equity financing?

What happens to demand and price during times of inflation?

Suppose a list of all American deposit institutions were created and a name chosen randomly from this list. Which of the following would the chosen institution most likely be?

Money frees society from a system of barter. In doing so, money is performing which of the following functions?

Gizmo's marketing director argues that because the global economy is interconnected, if Gizmo continues to be profitable in the United States, it should be able to invest that money to do well internationally. Which of the following, if True, would most weaken her argument?

Any object can serve as money if it is portable, divisible, durable, and stable.

Which of the following is NOT part of the M-1 supply?

In order to save money on transactional costs, the U.S. Treasury is moving to electronic fund transfers for payments rather than issuing checks.

Individual retirement accounts can be opened only by self-employed people such as doctors, small business owners, and consultants.

Regarding the international payments process, which statement is True?

The Us Business Environment

Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

The Global Context of Business

Business Management

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Pricing, Distributing, and Promoting Products

Information Technology for Business

The Role of Accountants and Accounting Information

Managing Finances

Filters

Exam 15: Money and Banking

Which of the following, if True, would strengthen the case for Munschausen's seeking to acquire capital by debt financing?

Which of the following federal laws made transactions between banks significantly more efficient?

What is the difference between a public pension fund and a private pension fund?

When buying from a supplier in France, LTD, based in Cleveland, Ohio, has arranged for its bank to pay the supplier the cost of the desired material when it has passed customs in the United States. Which of the following terms is this type of bank promise called?

The reason why a savings account is not considered a component of the M-1 money supply is that it bears interest.

Which of the following financial institutions was taken over by the Federal House Finance Agency in 2008 as a part of the Emergency Economic Recovery Act?

Due to privacy issues, anti-terrorist policies enacted in the early 2000s have had few significant repercussions on banking practices.

At any given time, there may be up to 15 different discount rates set by the Federal Reserve System for loaning money to commercial banks.

In international payments, equal money inflows and outflows can result in no money being transferred between countries.

Explain the need for requiring banks to be able to lend out only 90 percent of its deposit funds.

Which of the following, if True, would weaken the case for Munschausen's seeking to acquire capital by equity financing?

What happens to demand and price during times of inflation?

Suppose a list of all American deposit institutions were created and a name chosen randomly from this list. Which of the following would the chosen institution most likely be?

Money frees society from a system of barter. In doing so, money is performing which of the following functions?

Gizmo's marketing director argues that because the global economy is interconnected, if Gizmo continues to be profitable in the United States, it should be able to invest that money to do well internationally. Which of the following, if True, would most weaken her argument?

Any object can serve as money if it is portable, divisible, durable, and stable.

Which of the following is NOT part of the M-1 supply?

In order to save money on transactional costs, the U.S. Treasury is moving to electronic fund transfers for payments rather than issuing checks.

Individual retirement accounts can be opened only by self-employed people such as doctors, small business owners, and consultants.

Regarding the international payments process, which statement is True?

The Us Business Environment

Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

The Global Context of Business

Business Management

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Pricing, Distributing, and Promoting Products

Information Technology for Business

The Role of Accountants and Accounting Information

Managing Finances

Filters