Question 1

All else the same,a trade deficit:

Accepted Answer

A) increases GDP 
B) decreases GDP 
C) have no impact on GDP 
D) two of the above 
E) not enough information to tell 
A) increases GDP 
B) decreases GDP 
C) have no impact on GDP 
D) two of the above 
E) not enough information to tell

Question 2

Which of the following statements is most correct?

Accepted Answer

A) Personal consumption expenditures of $10.1 trillion in 2009 accounted for about 71 percent of GDP;this percentage relationship has been very stable throughout the decade of the 2000s. 
B) Personal consumption expenditures of $1.1 trillion in 2009 accounted for about 11 percent of GDP;this percentage relationship has been very stable throughout the decade of the 2000s. 
C) Personal consumption expenditures of $10.1 trillion in 2009 accounted for about 11 percent of GDP;this percentage relationship has been very unstable throughout the decade of the 2000s. 
D) Personal consumption expenditures of $1.1 trillion in 2009 accounted for about 71 percent of GDP;this percentage relationship has been very unstable throughout the decade of the 2000s. 
E) none of the above. 
A) Personal consumption expenditures of $10.1 trillion in 2009 accounted for about 71 percent of GDP;this percentage relationship has been very stable throughout the decade of the 2000s. 
B) Personal consumption expenditures of $1.1 trillion in 2009 accounted for about 11 percent of GDP;this percentage relationship has been very stable throughout the decade of the 2000s. 
C) Personal consumption expenditures of $10.1 trillion in 2009 accounted for about 11 percent of GDP;this percentage relationship has been very unstable throughout the decade of the 2000s. 
D) Personal consumption expenditures of $1.1 trillion in 2009 accounted for about 71 percent of GDP;this percentage relationship has been very unstable throughout the decade of the 2000s. 
E) none of the above.

Question 3

Which of the following expenditures account for the largest part of the Federal budget?

Accepted Answer

A) national defense 
B) interest on debt 
C) infrastructure investment 
D) government salaries 
E) none of the above 
A) national defense 
B) interest on debt 
C) infrastructure investment 
D) government salaries 
E) none of the above

Question 4

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

Question 5

Indirect financing is financing created by an intermediary that involves separate instruments with lenders and borrowers.

Accepted Answer

A) True 
 B)False

Question 6

The accumulation of reserves in insurance and pension funds is referred to as what type of savings?

Accepted Answer

A) voluntary savings 
B) forced savings 
C) real savings 
D) none of the above 
A) voluntary savings 
B) forced savings 
C) real savings 
D) none of the above

Question 7

Capital formation refers to the:

Accepted Answer

A) total accumulation of monetary savings in the nation 
B) distribution of savings among thrift institutions 
C) total of capital stock accounts with business corporations 
D) the construction of buildings in a country's capital city 
E) none of the above 
A) total accumulation of monetary savings in the nation 
B) distribution of savings among thrift institutions 
C) total of capital stock accounts with business corporations 
D) the construction of buildings in a country's capital city 
E) none of the above

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements is most correct?

Accepted Answer

A) Corporate after-tax profits rose from $473.8 billion in 2006 to $616.2 billion in 2008.This rise coincided with the 2007-09 financial crisis. 
B) Corporate after-tax profits remained about the same at $500 million between 2006 and 2008. 
C) Corporate after-tax profits declined from $616.2 billion in 2006 to $473.8 billion in 2008.This decline coincided with the 2007-09 financial crisis. 
D) Corporate after-tax profits rose from $473.8 million in 2006 to $616.2 million in 2008.This rise coincided with the 2007-09 financial crisis. 
E) none of the above. 
A) Corporate after-tax profits rose from $473.8 billion in 2006 to $616.2 billion in 2008.This rise coincided with the 2007-09 financial crisis. 
B) Corporate after-tax profits remained about the same at $500 million between 2006 and 2008. 
C) Corporate after-tax profits declined from $616.2 billion in 2006 to $473.8 billion in 2008.This decline coincided with the 2007-09 financial crisis. 
D) Corporate after-tax profits rose from $473.8 million in 2006 to $616.2 million in 2008.This rise coincided with the 2007-09 financial crisis. 
E) none of the above.

Question 10

A business deposit in a commercial bank represents:

Accepted Answer

A) a liability of the bank and an asset to the business 
B) an asset of the bank and a liability to the business 
C) liability to the bank and capital to the business 
D) liability to Joe's and capital to the business 
A) a liability of the bank and an asset to the business 
B) an asset of the bank and a liability to the business 
C) liability to the bank and capital to the business 
D) liability to Joe's and capital to the business

Question 11

The personal savings rate is calculated as:

Accepted Answer

A) personal savings divided by personal outlays 
B) personal savings divided by disposable personal income 
C) disposable personal income divided by personal outlays 
D) personal income divided by personal outlays 
A) personal savings divided by personal outlays 
B) personal savings divided by disposable personal income 
C) disposable personal income divided by personal outlays 
D) personal income divided by personal outlays

Question 12

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 
E) none of the above 
A) individuals 
B) business firms 
C) financial intermediaries 
D) governments 
E) none of the above

Question 13

Savings are the accumulation of cash and other financial assets and are generally classified into which of the following two categories?

Accepted Answer

A) voluntary and contractual savings 
B) primary and secondary savings 
C) personal and governmental savings 
D) voluntary and corporate savings 
A) voluntary and contractual savings 
B) primary and secondary savings 
C) personal and governmental savings 
D) voluntary and corporate savings

Question 14

When current savings of an economic unit exceed its direct investment in real assets,this is referred to as:

Accepted Answer

A) savings surplus 
B) savings deficit 
C) savings neutral 
D) savings inflation 
A) savings surplus 
B) savings deficit 
C) savings neutral 
D) savings inflation

Question 15

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

Accepted Answer

A) foreigners 
B) business firms 
C) financial intermediaries 
D) governments 
E) none of the above 
A) foreigners 
B) business firms 
C) financial intermediaries 
D) governments 
E) none of the above

Question 16

Direct financing involves the use of securities that represent specific contracts between savers and borrowers.

Accepted Answer

A) True 
 B)False

Question 17

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 18

Direct benefit payments for individuals amount to over half of total expenditures of the federal government.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

The largest category of federal budget receipts is from

Accepted Answer

A) foreign income taxes 
B) corporate income taxes 
C) excise taxes 
D) estate and gift taxes 
E) none of the above 
A) foreign income taxes 
B) corporate income taxes 
C) excise taxes 
D) estate and gift taxes 
E) none of the above

All else the same,a trade deficit:

Which of the following statements is most correct?

Which of the following expenditures account for the largest part of the Federal budget?

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

Indirect financing is financing created by an intermediary that involves separate instruments with lenders and borrowers.

The accumulation of reserves in insurance and pension funds is referred to as what type of savings?

Capital formation refers to the:

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

Which of the following statements is most correct?

A business deposit in a commercial bank represents:

The personal savings rate is calculated as:

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

Savings are the accumulation of cash and other financial assets and are generally classified into which of the following two categories?

When current savings of an economic unit exceed its direct investment in real assets,this is referred to as:

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

Direct financing involves the use of securities that represent specific contracts between savers and borrowers.

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

Direct benefit payments for individuals amount to over half of total expenditures of the federal government.

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

The largest category of federal budget receipts is from

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

All else the same,a trade deficit:

Which of the following statements is most correct?

Which of the following expenditures account for the largest part of the Federal budget?

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

Indirect financing is financing created by an intermediary that involves separate instruments with lenders and borrowers.

The accumulation of reserves in insurance and pension funds is referred to as what type of savings?

Capital formation refers to the:

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

Which of the following statements is most correct?

A business deposit in a commercial bank represents:

The personal savings rate is calculated as:

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

Savings are the accumulation of cash and other financial assets and are generally classified into which of the following two categories?

When current savings of an economic unit exceed its direct investment in real assets,this is referred to as:

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

Direct financing involves the use of securities that represent specific contracts between savers and borrowers.

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

Direct benefit payments for individuals amount to over half of total expenditures of the federal government.

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

The largest category of federal budget receipts is from

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