Question 1

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 2

Capital market securities are debt securities with maturities less than one year and corporate stocks.

Accepted Answer

A) True 
 B)False

Question 3

Direct securities:

Accepted Answer

A) are contracts between savers and institutions 
B) are contracts between savers and borrowers 
C) represent the financial asset of the borrower and the claim on the saver 
D) represent the claim on the institution 
A) are contracts between savers and institutions 
B) are contracts between savers and borrowers 
C) represent the financial asset of the borrower and the claim on the saver 
D) represent the claim on the institution

Question 4

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

Question 5

Undistributed profit is the proportion of after-tax profit paid as dividends to shareholders by a corporation.

Accepted Answer

A) True 
 B)False

Question 6

Real assets include indirect ownership of land, buildings, machinery, inventory, commodities, and precious metals.
Could not find "real assets" and "indirect" in the chapter….possibly in another chapter?

Accepted Answer

A) True 
 B)False

Question 7

Indirect financing involves the use of securities such as corporate stocks and bonds that represent specific contracts between the savers and borrowers themselves.
Not in chapter

Accepted Answer

A) True 
 B)False

Question 8

Which of the following represent the most important instrument used to raise funds in the credit markets?

Accepted Answer

A) corporate bonds 
B) tax-exempt obligations 
C) consumer debt 
D) mortgages 
A) corporate bonds 
B) tax-exempt obligations 
C) consumer debt 
D) mortgages

Question 9

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 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

Personal consumption expenditures indicate expenditures by individuals for durable goods, nondurable goods, and services.

Accepted Answer

A) True 
 B)False

Question 12

By definition, gross investment must equal gross savings.
Not in chapter

Accepted Answer

A) True 
 B)False

Question 13

Which one of the following borrowing sectors is the least important in terms of funds raised in the credit markets?

Accepted Answer

A) U.S.markets 
B) state and local governments 
C) households 
D) farms 
E) corporate 
A) U.S.markets 
B) state and local governments 
C) households 
D) farms 
E) corporate

Question 14

The primary factors that influence the total amount of savings in an economy in any given period include the trade surplus or deficit and exchange rates.

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) 	$2 billion 
A) 	$12 billion 
B) 	$8 billion 
C) 	$7 billion 
D) 	$2 billion

Question 16

Gross private domestic investment measures a nation's output of goods and services for a specified period of time.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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 "clone" or duplicate of above with none of the above as the 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 "clone" or duplicate of above with none of the above as the answer.

Question 20

New York Stock Exchange is an example of a primary market.
Not in this chapter.

Accepted Answer

A) True 
 B)False

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

Capital market securities are debt securities with maturities less than one year and corporate stocks.

Direct securities:

Financial assets include all except which of the following:

Undistributed profit is the proportion of after-tax profit paid as dividends to shareholders by a corporation.

Real assets include indirect ownership of land, buildings, machinery, inventory, commodities, and precious metals. Could not find "real assets" and "indirect" in the chapter….possibly in another chapter?

Indirect financing involves the use of securities such as corporate stocks and bonds that represent specific contracts between the savers and borrowers themselves. Not in chapter

Which of the following represent the most important instrument used to raise funds in the credit markets?

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

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

Personal consumption expenditures indicate expenditures by individuals for durable goods, nondurable goods, and services.

By definition, gross investment must equal gross savings. Not in chapter

Which one of the following borrowing sectors is the least important in terms of funds raised in the credit markets?

The primary factors that influence the total amount of savings in an economy in any given period include the trade surplus or deficit and exchange rates.

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:

Gross private domestic investment measures a nation's output of goods and services for a specified period of time.

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

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

Capital formation refers to the:

New York Stock Exchange is an example of a primary market. Not in this chapter.

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

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

Capital market securities are debt securities with maturities less than one year and corporate stocks.

Direct securities:

Financial assets include all except which of the following:

Undistributed profit is the proportion of after-tax profit paid as dividends to shareholders by a corporation.

Real assets include indirect ownership of land, buildings, machinery, inventory, commodities, and precious metals. Could not find "real assets" and "indirect" in the chapter….possibly in another chapter?

Indirect financing involves the use of securities such as corporate stocks and bonds that represent specific contracts between the savers and borrowers themselves. Not in chapter

Which of the following represent the most important instrument used to raise funds in the credit markets?

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

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

Personal consumption expenditures indicate expenditures by individuals for durable goods, nondurable goods, and services.

By definition, gross investment must equal gross savings. Not in chapter

Which one of the following borrowing sectors is the least important in terms of funds raised in the credit markets?

The primary factors that influence the total amount of savings in an economy in any given period include the trade surplus or deficit and exchange rates.

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:

Gross private domestic investment measures a nation's output of goods and services for a specified period of time.

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

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

Capital formation refers to the:

New York Stock Exchange is an example of a primary market. Not in this chapter.

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