Question 1

Financial assets include all except which of the following:

Accepted Answer

A) productive facilities 
B) time deposits 
C) business loans 
D) consumer loans 
A) productive facilities 
B) time deposits 
C) business loans 
D) consumer loans

Question 2

Savings are impacted only by cyclical movements in the economy.

Accepted Answer

A) True 
 B)False

Question 3

A business loan to Joe's Hardware Store by a bank represents which of the following?

Accepted Answer

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

Question 4

Which of the following categories is not considered to be one of the four basic economic units in the U.S.financial system?

Accepted Answer

A) business firms 
B) financial intermediaries 
C) governments 
D) not-for-profit organizations 
A) business firms 
B) financial intermediaries 
C) governments 
D) not-for-profit organizations

Question 5

A business loan to Joe's Hardware Store by a bank represents which of the following?

Accepted Answer

A) a liability of the bank and an asset to Joe's 
B) a liability of the bank and a liability to Joe's 
C) liability to the bank and capital to Joe's 
D) liability to Joe's and capital to the bank 
E) none of the above 
A) a liability of the bank and an asset to Joe's 
B) a liability of the bank and a liability to Joe's 
C) liability to the bank and capital to Joe's 
D) liability to Joe's and capital to the bank 
E) none of the above

Question 6

Which of the following statements is most correct?

Accepted Answer

A) While the dollar amount of imports decreased dramatically in 2006 compared to 2003,they actually increased in 2009 relative to the 2006 level;this development reflects the impact of the 2007-09 financial crisis and the weakening of the U.S.dollar relative to other major currencies as the decade of the 2000s came to a close. 
B) While the dollar amount of imports increased dramatically in 2006 over 2003,they actually fell in 2009 relative to the 2006 level;this development reflects the impact of the 2007-09 financial crisis and the weakening of the U.S.dollar relative to other major currencies as the decade of the 2000s came to a close. 
C) While the dollar amount of imports increased dramatically in 2006 over 2003,they actually fell in 2009 relative to the 2006 level;this development reflects the impact of the 2007-09 financial crisis and the strengthening of the U.S.dollar relative to other major currencies as the decade of the 2000s came to a close. 
D) While the dollar amount of imports decreased dramatically in 2006 compared to 2003,they actually fell in 2009 relative to the 2006 level;this development reflects the impact of the 2007-09 financial crisis and the strengthening of the U.S.dollar relative to other major currencies as the decade of the 2000s came to a close. 
E) none of the above. 
A) While the dollar amount of imports decreased dramatically in 2006 compared to 2003,they actually increased in 2009 relative to the 2006 level;this development reflects the impact of the 2007-09 financial crisis and the weakening of the U.S.dollar relative to other major currencies as the decade of the 2000s came to a close. 
B) While the dollar amount of imports increased dramatically in 2006 over 2003,they actually fell in 2009 relative to the 2006 level;this development reflects the impact of the 2007-09 financial crisis and the weakening of the U.S.dollar relative to other major currencies as the decade of the 2000s came to a close. 
C) While the dollar amount of imports increased dramatically in 2006 over 2003,they actually fell in 2009 relative to the 2006 level;this development reflects the impact of the 2007-09 financial crisis and the strengthening of the U.S.dollar relative to other major currencies as the decade of the 2000s came to a close. 
D) While the dollar amount of imports decreased dramatically in 2006 compared to 2003,they actually fell in 2009 relative to the 2006 level;this development reflects the impact of the 2007-09 financial crisis and the strengthening of the U.S.dollar relative to other major currencies as the decade of the 2000s came to a close. 
E) none of the above.

Question 7

All else the same,a trade deficit:

Accepted Answer

A) increases GDP 
B) decreases GDP 
C) have no impact on GDP 
D) none of the above 
A) increases GDP 
B) decreases GDP 
C) have no impact on GDP 
D) none of the above

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

The federal debt is the same thing as the budget deficit.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following borrowing sectors is the most important on an annual basis for raising funds in the credit markets?

Accepted Answer

A) U.S.governments 
B) state and local governments 
C) households 
D) corporations 
A) U.S.governments 
B) state and local governments 
C) households 
D) corporations

Question 11

Which of the following categories is not considered to be one of the four basic economic units in the U.S.financial system?

Accepted Answer

A) business firms 
B) financial intermediaries 
C) governments 
D) not-for-profit organizations 
E) all are considered among the four basic economic units of the financial
System 
A) business firms 
B) financial intermediaries 
C) governments 
D) not-for-profit organizations 
E) all are considered among the four basic economic units of the financial
System

Question 12

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) $11 billion 
B) $8 billion 
C) $7 billion 
D) $2 billion 
E) none of the above 
A) $11 billion 
B) $8 billion 
C) $7 billion 
D) $2 billion 
E) none of the above

Question 13

What type of investment occurs when claims to wealth in the form of financial assets are purchased or when debt obligations are repaid?

Accepted Answer

A) financial investment 
B) real investment 
C) contractual investment 
D) voluntary investment 
A) financial investment 
B) real investment 
C) contractual investment 
D) voluntary investment

Question 14

Funding for some government agencies that is not included in the federal budget is called

Accepted Answer

A) discretionary federal spending 
B) non-discretionary outlays 
C) non-negotiable expense items 
D) secret program spending 
E) none of the above 
A) discretionary federal spending 
B) non-discretionary outlays 
C) non-negotiable expense items 
D) secret program spending 
E) none of the above

Question 15

GDP includes personal consumption expenditures,government purchases of goods and services,gross private domestic investment,and net exports of goods and services.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) national defense 
B) interest on debt 
C) direct benefits to individuals 
D) none of the above 
A) national defense 
B) interest on debt 
C) direct benefits to individuals 
D) none of the above

Question 17

Indirect financing involves the use of securities such as corporate stocks and bonds that represent specific contracts between the savers and borrowers themselves.

Accepted Answer

A) True 
 B)False

Question 18

Funding for some government agencies that is not included in the federal budget is called

Accepted Answer

A) off-budget outlays 
B) non-discretionary outlays 
C) non-negotiable expense items 
D) none of the above 
A) off-budget outlays 
B) non-discretionary outlays 
C) non-negotiable expense items 
D) none of the above

Question 19

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

Accepted Answer

A) personal consumption expenditures 
B) gross exports 
C) government expenditures 
D) all of the above are included 
A) personal consumption expenditures 
B) gross exports 
C) government expenditures 
D) all of the above are included

Question 20

Financial assets include all except which of the following:

Accepted Answer

A) common stocks 
B) time deposits 
C) business loans 
D) consumer loans 
E) all of the above are financial assets 
A) common stocks 
B) time deposits 
C) business loans 
D) consumer loans 
E) all of the above are financial assets

Financial assets include all except which of the following:

Savings are impacted only by cyclical movements in the economy.

A business loan to Joe's Hardware Store by a bank represents which of the following?

Which of the following categories is not considered to be one of the four basic economic units in the U.S.financial system?

A business loan to Joe's Hardware Store by a bank represents which of the following?

Which of the following statements is most correct?

All else the same,a trade deficit:

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

The federal debt is the same thing as the budget deficit.

Which of the following borrowing sectors is the most important on an annual basis for raising funds in the credit markets?

Which of the following categories is not considered to be one of the four basic economic units in the U.S.financial system?

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:

What type of investment occurs when claims to wealth in the form of financial assets are purchased or when debt obligations are repaid?

Funding for some government agencies that is not included in the federal budget is called

GDP includes personal consumption expenditures,government purchases of goods and services,gross private domestic investment,and net exports of goods and services.

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

Indirect financing involves the use of securities such as corporate stocks and bonds that represent specific contracts between the savers and borrowers themselves.

Funding for some government agencies that is not included in the federal budget is called

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

Financial assets include all except which of the following:

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

Financial assets include all except which of the following:

Savings are impacted only by cyclical movements in the economy.

A business loan to Joe's Hardware Store by a bank represents which of the following?

Which of the following categories is not considered to be one of the four basic economic units in the U.S.financial system?

A business loan to Joe's Hardware Store by a bank represents which of the following?

Which of the following statements is most correct?

All else the same,a trade deficit:

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

The federal debt is the same thing as the budget deficit.

Which of the following borrowing sectors is the most important on an annual basis for raising funds in the credit markets?

Which of the following categories is not considered to be one of the four basic economic units in the U.S.financial system?

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:

What type of investment occurs when claims to wealth in the form of financial assets are purchased or when debt obligations are repaid?

Funding for some government agencies that is not included in the federal budget is called

GDP includes personal consumption expenditures,government purchases of goods and services,gross private domestic investment,and net exports of goods and services.

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

Indirect financing involves the use of securities such as corporate stocks and bonds that represent specific contracts between the savers and borrowers themselves.

Funding for some government agencies that is not included in the federal budget is called

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

Financial assets include all except which of the following:

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