Question 1

The corporate retention rate is simply another term for the corporate savings rate.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following statements is most correct?

Accepted Answer

A) The federal government has produced annual budget deficits for all years but four, when it ran consecutive budget surpluses that began in 1986 during the Reagan administration. 
B) The federal government has produced annual budget deficits for all years but four, when it ran consecutive budget surpluses that began in 1990 during the George H.W.Bush administration. 
C) The federal government has produced annual budget deficits for all years but four, when it ran consecutive budget surpluses that began in 2002 during the George W.Bush administration. 
D) The federal government has produced annual budget deficits for all years but four, when it ran consecutive budget surpluses that began in 1998 during the Clinton administration. 
E) none of the above. 
A) The federal government has produced annual budget deficits for all years but four, when it ran consecutive budget surpluses that began in 1986 during the Reagan administration. 
B) The federal government has produced annual budget deficits for all years but four, when it ran consecutive budget surpluses that began in 1990 during the George H.W.Bush administration. 
C) The federal government has produced annual budget deficits for all years but four, when it ran consecutive budget surpluses that began in 2002 during the George W.Bush administration. 
D) The federal government has produced annual budget deficits for all years but four, when it ran consecutive budget surpluses that began in 1998 during the Clinton administration. 
E) none of the above.

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

If the imports of goods and services exceed exports, GDP will be higher.

Accepted Answer

A) True 
 B)False

Question 5

At present, receipts of social insurance taxes received exceed payments made.However, it is expected that this situation will be reversed within the next two years.
Empirical, variable, and not in the chapter

Accepted Answer

A) True 
 B)False

Question 6

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 7

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 8

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 9

Securitization is the process of insuring mortgage loans against default.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is not a stage in the corporation cycle?

Accepted Answer

A) Start-up stage 
B) Capital formation stage 
C) Rapid growth stage 
D) Survival stage 
E) Maturity Stage 
A) Start-up stage 
B) Capital formation stage 
C) Rapid growth stage 
D) Survival stage 
E) Maturity Stage

Question 11

In general, during the business cycle, when economic activity is peaking:

Accepted Answer

A) interest rates begin to creep higher 
B) unemployment levels are low 
C) inflation begins to edge higher 
D) all of the above 
E) not enough information to tell Same as #68 
A) interest rates begin to creep higher 
B) unemployment levels are low 
C) inflation begins to edge higher 
D) all of the above 
E) not enough information to tell Same as #68

Question 12

If personal consumption expenditures are $6 billion, government purchases are $10 billion, gross private domestic investments are $4 billion and net exports are $negative 3 billion, then GDP is:

Accepted Answer

A) 	$23 billion 
B) 	$20 billion 
C) 	$17 billion 
D) 	$16 billion 
E)      none of the above 
A) 	$23 billion 
B) 	$20 billion 
C) 	$17 billion 
D) 	$16 billion 
E)      none of the above

Question 13

Which of the following is a savings deficit unit?

Accepted Answer

A) businesses 
B) government 
C) individuals 
D) both a and b 
A) businesses 
B) government 
C) individuals 
D) both a and b

Question 14

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

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Government purchases include only expenditures for goods and services by the federal government.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following instruments generates the largest amount of funds annually in the credit markets?

Accepted Answer

A) tax-exempt obligations 
B) corporate bonds 
C) mortgages 
D) bank loans 
A) tax-exempt obligations 
B) corporate bonds 
C) mortgages 
D) bank loans

Question 18

If an individual supplies funds to a business firm by purchasing bonds issued by the firm, the transaction:

Accepted Answer

A) creates two types of financial assets and two types of financial liabilities 
B) increases the liquidity and safety of principal for the individual 
C) initially occurs in the primary market 
D) limits the ability of the security to be sold in the secondary market 
A) creates two types of financial assets and two types of financial liabilities 
B) increases the liquidity and safety of principal for the individual 
C) initially occurs in the primary market 
D) limits the ability of the security to be sold in the secondary market

Question 19

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 declined from $616.2 billion in 2006 to $473.8 billion in 2008.This decline coincided with the 2007-09 financial crisis. 
C) Corporate after-tax profits declined from $616.2 million in 2006 to $473.8 million 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 declined from $616.2 billion in 2006 to $473.8 billion in 2008.This decline coincided with the 2007-09 financial crisis. 
C) Corporate after-tax profits declined from $616.2 million in 2006 to $473.8 million 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 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 Similar to a prior item 
A) foreign income taxes 
B) corporate income taxes 
C) excise taxes 
D) estate and gift taxes 
E) none of the above Similar to a prior item

The corporate retention rate is simply another term for the corporate savings rate.

Which of the following statements is most correct?

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

If the imports of goods and services exceed exports, GDP will be higher.

At present, receipts of social insurance taxes received exceed payments made.However, it is expected that this situation will be reversed within the next two years. Empirical, variable, and not in the chapter

Which of the following is 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?

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

Securitization is the process of insuring mortgage loans against default.

Which of the following is not a stage in the corporation cycle?

In general, during the business cycle, when economic activity is peaking:

If personal consumption expenditures are $6 billion, government purchases are $10 billion, gross private domestic investments are $4 billion and net exports are $negative 3 billion, then GDP is:

Which of the following is a savings deficit unit?

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

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

Government purchases include only expenditures for goods and services by the federal government.

Which of the following instruments generates the largest amount of funds annually in the credit markets?

If an individual supplies funds to a business firm by purchasing bonds issued by the firm, the transaction:

Which of the following statements is most correct?

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

The corporate retention rate is simply another term for the corporate savings rate.

Which of the following statements is most correct?

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

If the imports of goods and services exceed exports, GDP will be higher.

At present, receipts of social insurance taxes received exceed payments made.However, it is expected that this situation will be reversed within the next two years. Empirical, variable, and not in the chapter

Which of the following is 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?

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

Securitization is the process of insuring mortgage loans against default.

Which of the following is not a stage in the corporation cycle?

In general, during the business cycle, when economic activity is peaking:

If personal consumption expenditures are $6 billion, government purchases are $10 billion, gross private domestic investments are $4 billion and net exports are $negative 3 billion, then GDP is:

Which of the following is a savings deficit unit?

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

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

Government purchases include only expenditures for goods and services by the federal government.

Which of the following instruments generates the largest amount of funds annually in the credit markets?

If an individual supplies funds to a business firm by purchasing bonds issued by the firm, the transaction:

Which of the following statements is most correct?

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