Question

In: Economics

1. If the Apple corporation sells a bond it is a)borrowing directly from the public b)borrowing...

1. If the Apple corporation sells a bond it is

a)borrowing directly from the public
b)borrowing indirectly from the public
c)selling shares of ownership directly to the public
d)selling shares of ownership indirectly to the public

2. The single most important piece of information about a stock is its

a)term
b)dividend
c)daily volume
d)price

3. Which of the following lists is included in what economists call
"money"?

a)cash
b)cash and stocks and bonds
c)cash and stocks and bonds and real estate
d)cash and stocks and bonds and real estate and all other assets

4. Which of the following best illustrates the medium of exchange function
of money?

a)You keep some money hidden in your shoe.
b)You keep track of the value of your assets in terms of currency.
c)You pay for your oil change using currency.
d)None of the above is correct.

5. Most financial assets other than money function as

a)a medium of exchange, a unit of account, and a store of value.
b)a medium of exchange and a store of value, but not a unit of account.
c)a store of value and a unit of account, but not a medium of exchange.
d)a store of value, but not a unit of account nor a medium of exchange

6. To maintain their standard of living, most people rely on

a)government assistance.
b)their labor earnings
c)their personal savings
d)All of the above are correct

7. The amount of unemployment that an economy normally experiences is
called the

a)average rate of unemployment
b)natural rate of unemployment
c)cyclical rate of unemployment
d)typical rate of unemployment

Solutions

Expert Solution

Solution-

1. If the Apple corporation sells a bond it is borrowing directly from the public.

The correct option is A. borrowing directly from the public.

2. The single most important piece of information about a stock is its Price.

The correct option is D. Price.

3. Which of the following lists is included in what economists call "money"?

The correct option is A. Cash.

4. Which of the following best illustrates the medium of exchange function of money?

The correct option is C. You pay for your oil change using currency.

5. Most financial assets other than money function as a store of value, but not a unit of account nor a medium of exchange.

The correct option is D. a store of value, but not a unit of account nor a medium of exchange.

6. To maintain their standard of living, most people rely on their labor earnings.

The correct option is B. their labor earnings.

7. The amount of unemployment that an economy normally experiences is called the natural rate of unemployment.

The correct option is B. natural rate of unemployment.


Related Solutions

b. Explain with examples what type of organisation Apple Corporation currently is (e.g. partnership, public limited...
b. Explain with examples what type of organisation Apple Corporation currently is (e.g. partnership, public limited or private limited) and why the owners choose to start such an organisation.                                                                                                                            c. Explain with examples THREE (3) internal and TWO (2) external environment factors of Apple Company.                                  
Stockholders of a corporation directly elect a the president of the corporation. b the board of...
Stockholders of a corporation directly elect a the president of the corporation. b the board of directors. c the treasurer of the corporation. d all of the employees of the corporation. Which one of the following would not be considered an advantage of the corporate form of organization? a Limited liability of owners b Separate legal existence c Continuous life d Government regulation Mary Thresh has invested $200,000 in a privately held family corporation. The corporation does not do well...
1. For corporation, bond is a A obligation, but management of a corporation has B duty...
1. For corporation, bond is a A obligation, but management of a corporation has B duty to its common shareholders what is A and B? 2. High Financial Leverage or high Operating leverage makes a company’s earnings more ____________. 3. The discount rate used to calculate the PV of cash flows expected to be received in the future must consider 2 factors. What are two factors? 4. If interest is paid more than once a year APR or EAR will...
1. One way companies protect themselves from borrowing too much is to put aconstrain the bond...
1. One way companies protect themselves from borrowing too much is to put aconstrain the bond rating, i.e., not allow the debt ratio to increase so much that therating (synthetic or estimated) drops below the rating constraint. For a non- financialservice company, that rating constraint is often investment grade (BBB). Which of thefollowing reasons explains this rating constraint? a. Your cost of debt can rise significantly once you drop below investmentgrade. b. If your rating drops below investment grade, your...
From the point of view of a borrowing corporation, what are credit and repricing risks? Explain...
From the point of view of a borrowing corporation, what are credit and repricing risks? Explain steps a company might take to minimize both.
1. a rise in government borrowing shifts the bond demand curve to the right raises the...
1. a rise in government borrowing shifts the bond demand curve to the right raises the equilibrium price of bonds raises the equilibrium rate of interest Shifts the bond supply curve to the left 2. a rise in the supply of bonds increases the equilibrium price of bonds and lowers equilibrium interest rates lowers the equilibrium price of bonds and lowers equilibrium interest rates lowers the equilibrium price of bonds and raises equilibrium interest rates none of the answers are...
(a) Give a definition of a closed set. (b) Show, directly from the definition, that a...
(a) Give a definition of a closed set. (b) Show, directly from the definition, that a union of finitely many closed sets is closed. (c) Give an example of a countable collection of closed intervals In such that ∪ n=1 to ∞ In is open (make sure to prove it).
Corporation A sells coffee bottles to all, starbursts, locations in the United States. Corporation B sells...
Corporation A sells coffee bottles to all, starbursts, locations in the United States. Corporation B sells dinner paper plates to Olive Garden. Corporation A charges $1 for a pack of 100 bottles and Corporation B charges $3 for 1 dinner paper plate. Tell us exactly what information you would need to determine whether Corporation A or Corporation B has higher annual revenue and explain how you would calculate these two figures.
On February 2nd, 2017, Apple (AAPL) Corporation issued a senior, unsecured bond with a maturity in...
On February 2nd, 2017, Apple (AAPL) Corporation issued a senior, unsecured bond with a maturity in 2047. The coupon rate on the new bond is 4.25% fixed paying semi-annual interest on February 9th and August 9th. At the time of issue the bond received a AA+ rating from Standard & Poor's and Aa1 rating from Moody's. The amount raised through this bond issue was $1 billion. In the first quarter of 2017, Apple saw a net income growth rate of...
question 1: Bond A is a municipal bond and Bond B is a corporate bond. Which...
question 1: Bond A is a municipal bond and Bond B is a corporate bond. Which bond should have the higher yield to maturity? QUESTION 2: Both A and B took out 30-year mortgages. A paid his off in 28 years. B paid hers off in 29 years. All else equal, who paid more interet? A OR B OR BOTH Question 4 Stock Standard Deviation Beta A 0.25 0.8 B 0.15 1.1 Which stock has the greatest total risk? A....
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT