In: Finance
40. Which of the following typically occur during a
recession?
a. The Velocity of Money increases because people spend less
b. Unemployment increases
c The Federal Reserve increases interest rates
d. All of the above
41. The Fed implements “monetary policy” through each of the following EXCEPT
a. Setting reserve requirements
b. Setting the discount rate
c. Setting the terms of international trade
d. Conducting open-market operations
42. Under which of the following business organizations do the owners have unlimited liability?
a. Proprietorship
b. Corporation
c. Limited Partnership
d. None of the above
43. Which of the following is true of Designated Market
Makers?
a. They trade on behalf of their clients
b. They are guaranteed a profit in exchange for their service
c. They must stand ready to buy or sell a particular security d. They create and distribute securities for the public
44. Which of the following contributes the most savings, thus capital formation and economic growth, to the US economy
a. The federal government
b. Businesses
c. Individuals
d. State and local economic development agencies
45. If you invest your portfolio 80% in Snapchat and 20% in
Coca-Cola and Snapchat loses all its value (goes to zero), your
Portfolio Return will be:
a. The average return of Snapchat and Coca-Cola
b. The return of Coca-Cola
c. 20% of the return of Coca-Cola
d. 80% of the return of Snapchat
40. Which of the following typically occur during a
recession?
a. The Velocity of Money increases because people spend less.
b. Unemployment increases
c The Federal Reserve increases interest rates
d. All of the above
Answer: D
41. The Fed implements “monetary policy” through each of the following EXCEPT
a. Setting reserve requirements
b. Setting the discount rate
c. Setting the terms of international trade
d. Conducting open-market operations.
Answer: A
42. Under which of the following business organizations do the owners have unlimited liability?
a. Proprietorship
b. Corporation
c. Limited Partnership
d. None of the above
Answer: A
43. Which of the following is true of Designated Market
Makers?
a. They trade on behalf of their clients
b. They are guaranteed a profit in exchange for their service
c. They must stand ready to buy or sell a particular security.
d. They create and distribute securities for the public
Answer: D
44. Which of the following contributes the most savings, thus capital formation and economic growth, to the US economy.
a. The federal government
b. Businesses
c. Individuals
d. State and local economic development agencies
Answer: B
45. If you invest your portfolio 80% in Snapchat and 20% in
Coca-Cola and Snapchat loses all its value (goes to zero), your
Portfolio Return will be:
a. The average return of Snapchat and Coca-Cola
b. The return of Coca-Cola
c. 20% of the return of Coca-Cola
d. 80% of the return of Snapchat
Answer: A