Question 1

A saver who chooses securities as a savings medium and desires maximum growth 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 2

Which of the following is a savings surplus unit?

Accepted Answer

A) businesses 
B) government 
C) individuals 
D) none of the above 
A) businesses 
B) government 
C) individuals 
D) none of the above

Question 3

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

Accepted Answer

A) Social Security payments. 
B) Medicare payments 
C) health expenditures 
D) all the above are included 
E) none of the above 
A) Social Security payments. 
B) Medicare payments 
C) health expenditures 
D) all the above are included 
E) none of the above

Question 4

Financial assets include ownership of land,buildings,machinery,inventory,commodities,and precious metals.

Accepted Answer

A) True 
 B)False

Question 5

The largest proportion of government revenue comes from corporate income taxes.

Accepted Answer

A) True 
 B)False

Question 6

The personal savings rate is calculated as:

Accepted Answer

A) personal savings divided by personal outlays 
B) personal savings multiplied by disposable personal income 
C) disposable personal income divided by personal outlays 
D) personal income divided by personal outlays 
E) none of the above 
A) personal savings divided by personal outlays 
B) personal savings multiplied by disposable personal income 
C) disposable personal income divided by personal outlays 
D) personal income divided by personal outlays 
E) none of the above

Question 7

Financing created by an intermediary that involves separate instruments with lenders and borrowers is called:

Accepted Answer

A) direct financing 
B) indirect financing 
C) secondary financing 
D) none of the above 
A) direct financing 
B) indirect financing 
C) secondary financing 
D) none of the above

Question 8

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 the creation of one type of financial asset and one type of financial liability. 
B) During the early years of the history of the United States,foreigners purchased significant volumes of federal government securities. 
C) The single most important use of funds raised in the credit markets is by the household sector. 
D) All of the above statements are false. 
A) The process of channeling savings into investment through the use of a financial institution or intermediary results in the creation of one type of financial asset and one type of financial liability. 
B) During the early years of the history of the United States,foreigners purchased significant volumes of federal government securities. 
C) The single most important use of funds raised in the credit markets is by the household sector. 
D) All of the above statements are false.

Question 9

Which of the following statements is most correct?

Accepted Answer

A) The personal savings rate in the United States,which is personal savings as a percentage of disposable personal income,remained unchanged at 2.4 percent from 2006 to 2009,due largely the economic stability during the period. 
B) The personal savings rate in the United States,which is personal savings as a percentage of disposable personal income,decreased from 4.6 percent to 2.4 percent from 2006 to 2009,due largely to the fact that individuals began to spend more because of the economic realities created by the financial crisis of 2007-09. 
C) The personal savings rate in the United States,which is personal savings as a percentage of disposable personal income,increased from 10.1 percent to 20.5 percent from 2006 to 2009,due largely to the fact that individuals began to save more because of the economic uncertainties created by the financial crisis of 2007-09. 
D) The personal savings rate in the United States,which is personal savings as a percentage of disposable personal income,declined from 45 percent to 40 percent from 2006 to 2009,due largely to the fact that individuals began to spend more because of the economic realities created by the financial crisis of 2007-09. 
E) none of the above. 
A) The personal savings rate in the United States,which is personal savings as a percentage of disposable personal income,remained unchanged at 2.4 percent from 2006 to 2009,due largely the economic stability during the period. 
B) The personal savings rate in the United States,which is personal savings as a percentage of disposable personal income,decreased from 4.6 percent to 2.4 percent from 2006 to 2009,due largely to the fact that individuals began to spend more because of the economic realities created by the financial crisis of 2007-09. 
C) The personal savings rate in the United States,which is personal savings as a percentage of disposable personal income,increased from 10.1 percent to 20.5 percent from 2006 to 2009,due largely to the fact that individuals began to save more because of the economic uncertainties created by the financial crisis of 2007-09. 
D) The personal savings rate in the United States,which is personal savings as a percentage of disposable personal income,declined from 45 percent to 40 percent from 2006 to 2009,due largely to the fact that individuals began to spend more because of the economic realities created by the financial crisis of 2007-09. 
E) none of the above.

Question 10

Which of the following would not be holders of financial assets?

Accepted Answer

A) state governments 
B) U.S.government 
C) local governments 
D) all might hold financial assets 
E) none of the above hold financial assets 
A) state governments 
B) U.S.government 
C) local governments 
D) all might hold financial assets 
E) none of the above hold financial assets

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Estimates of "using up" plant and equipment for business purposes are called

Accepted Answer

A) accelerated depreciation estimates 
B) gross capital formations 
C) capital consumption adjustments 
D) none of the above 
A) accelerated depreciation estimates 
B) gross capital formations 
C) capital consumption adjustments 
D) none of the above

Question 13

A savings deficit occurs when investment in real assets exceeds current income.

Accepted Answer

A) True 
 B)False

Question 14

Contractual savings are financial assets set aside for use in the future.

Accepted Answer

A) True 
 B)False

Question 15

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) cannot be determined 
A) $12 billion 
B) $8 billion 
C) $7 billion 
D) cannot be determined

Question 16

Most income for the Federal Government comes from:

Accepted Answer

A) corporate income taxes 
B) foreign income taxes 
C) government oil revenues 
D) military weapon sales 
E) none of the above 
A) corporate income taxes 
B) foreign income taxes 
C) government oil revenues 
D) military weapon sales 
E) none of the above

Question 17

Consumption is reflected by the sum of personal consumption expenditures and government purchases of goods and services.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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 20

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) all are included 
A) the formative/education developing stage 
B) the career earning/family creating stage 
C) the wealth building stage 
D) all are included

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

Which of the following is a savings surplus unit?

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

Financial assets include ownership of land,buildings,machinery,inventory,commodities,and precious metals.

The largest proportion of government revenue comes from corporate income taxes.

The personal savings rate is calculated as:

Financing created by an intermediary that involves separate instruments with lenders and borrowers is called:

Which of the following statements is false?

Which of the following statements is most correct?

Which of the following would not be holders of financial assets?

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

Estimates of "using up" plant and equipment for business purposes are called

A savings deficit occurs when investment in real assets exceeds current income.

Contractual savings are financial assets set aside for use in the future.

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:

Most income for the Federal Government comes from:

Consumption is reflected by the sum of personal consumption expenditures and government purchases of goods and services.

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

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 life stages of an individual saver include all of the following EXCEPT:

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 Valuation

Securities 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

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

Which of the following is a savings surplus unit?

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

Financial assets include ownership of land,buildings,machinery,inventory,commodities,and precious metals.

The largest proportion of government revenue comes from corporate income taxes.

The personal savings rate is calculated as:

Financing created by an intermediary that involves separate instruments with lenders and borrowers is called:

Which of the following statements is false?

Which of the following statements is most correct?

Which of the following would not be holders of financial assets?

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

Estimates of "using up" plant and equipment for business purposes are called

A savings deficit occurs when investment in real assets exceeds current income.

Contractual savings are financial assets set aside for use in the future.

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:

Most income for the Federal Government comes from:

Consumption is reflected by the sum of personal consumption expenditures and government purchases of goods and services.

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

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 life stages of an individual saver include all of the following EXCEPT:

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 Valuation

Securities 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