uestion 2
Don't use plagiarized sources. Get Your Custom Essay on
math1
Just from $13/Page
As of 2019, the Chairman of the Federal Reserve is ________________________.
Jerome Powell
Alan Greenspan
Ben Bernanke
Janet Yellen
uestion 3
The budget-making process rests with the
Congress.
U.S. Treasury.
President’s Council of Economic Advisors.
U.S. Treasury in cooperation with the Fed.
uestion 4
This is the study of how individuals prepare for financial emergencies, protect against premature death and property losses, and accumulate wealth.
Corporate finance
Business finance
Entrepreneurial finance
Personal finance
None of the above
uestion 5
The members of the Fed Board of Governors are
elected by the member banks.
appointed by the President of the United States with the advice and consent of the Senate.
appointed by the Secretary of the Treasury.
appointed by each of the Federal Reserve banks.
uestion 6
Involves conducting financial analysis and valuation of new securities being issued.
Stockbroker
Security analyst
Investment banking analyst
Financial planner assistant
uestion 7
Vault cash and deposits held at Federal Reserve Banks.
Excess reserves
Required reserves ratio
Fractional reserve system
Bank reserves
uestion 8
Which of the following is not a responsibility of the Board of Governors?
Sets reserve requirements
Supervises and regulates member banks
Proposes discount rates
Oversees Federal Reserve Banks
uestion 9
The Class C directors of each Federal Reserve Bank are
appointed by the Board of Governors of the Federal Reserve System.
elected by the member banks.
chosen by the Board of Governors and by the member banks.
appointed by the President of the United States with the advice and consent of the Senate.
uestion 10
Involves conducting research on investment opportunities for a bank trust department.
Loan analyst
Bank teller
Investments research analyst
Bank manager
uestion 11
An economy’s _____________________ is the interaction of policy makers, a monetary system, financial institutions, and financial markets to expedite the flow of financial capital from savings into investment:
banking system
stock market
capital market
financial system
uestion 12
Deposits that add new reserves to the bank where they are deposited are called
primary deposits.
derivative deposits.
secondary deposits.
Special Drawing Rights.
uestion 13
Under the authority of the Federal Reserve Act of 1913
all national and state-chartered banks must become members of the Fed.
only national banks were permitted to become members of the Fed.
state-chartered banks were permitted to withdraw from membership with the Fed.
a system of deposit insurance was created.
uestion 14
Occurs when tax revenues are more than expenditures.
Federal budget
Budget surplus
Balanced budget
Monetizing the debt
The Fed controls the _____ supply.
credit
mortgage
money
credit card balances
uestion 16
The capital stock of each Federal Reserve Bank
is owned by the Board of Governors of the Fed.
can be used in an emergency to provide funds for the Fed.
is owned by members of the individual Federal Reserve Banks.
has been reserved for purchase of the U.S. Treasury.
uestion 17
Two risky assets can be combined to lower the overall risk of a portfolio. This principle is commonly referred to as
blending
asset allocation
diversification
portfolio segmentation
uestion 18
Budgetary deficits always have the effect of
creating inflationary pressures.
crowding out private lenders.
forcing the Federal Reserve to buy government securities.
creating governmental competition for private investment funds.
uestion 19
The U.S. banking system has the ability to alter the size of the money supply because of the use of
a 100% reserve system.
a fractional reserve system.
the Federal Reserve System’s excess reserves.
Federal Reserve notes issued by the U.S. Treasury.
uestion 20
In September, 2008 ____________ was acquired by Bank of America and _____________ declared bankruptcy when no viable financial alternatives surfaced.
Bank of America; Washington Mutual
Merrill Lynch; Lehman Brothers
Citicorp; Smith Barney
Morgan Stanley; Chase
Week 3
1. Also known as the Fed.
2. ____________________ provide the record-keeping mechanism for showing ownership of the financial instruments used in the flow of financial funds between savers and borrowers and record revenues, expenses, and profitability of organizations that produce and exchange goods and services.
3. This involves financial planning, asset management, and fund-raising decisions to enhance the value of businesses.
4. Involves monitoring and managing the firm’s day-to-day cash inflows and outflows.
5. The Fed controls the _____ supply.
6. The basic requirements for an effective financial system in a developed economy include:
7. Involves analyzing and making recommendations on the investment potential of specific securities.
8. Involves evaluating financial performance and preparing financial plans.
9. __________ are where financial contracts that derive their values from underlying debt and equity securities are originated and traded.
10. The Federal Reserve Banks are owned by
11. ___________ is an accommodative activity of the Federal Reserve System.
12. The purpose of Regulation Z is to
13. An effective financial system must have:
14. Formed to support mortgage markets by purchasing and holding mortgage loans,
15. Member banks of the Federal Reserve System
16. History generally supports the contention that under the guidance of Paul Volcker, a (n) ____________ Fed policy brought down the double-digit inflation of the 1970s and the early 1980s, and the Federal Open Market Committee consistently responded to his leadership.
17. The interest rate that a bank must pay to borrow from its regional federal reserve bank is called
18. Which of the following is a method by which the Federal Reserve establishes monetary policy?
19. The basic policy instruments that the Fed uses to execute monetary policy include all of the following except
20. This act sets up a procedure for correcting mistakes on credit records and requires that records be used only for legitimate business purposes.
Week 7 quiz
1. Equity security that has a senior claim to the firm’s earnings and assets over common stock.
2. Estimates of “using up” plant and equipment for business purposes are called
3. The U.S balance of payments involves all of the following except
4. During the early years of the life stage of a typical corporation, the:
5. These bonds have their coupons reset every two or three years to reflect the current interest rate environment and any changes in the firm’s credit quality.
6. It was created to help economic growth in developing countries.
7. Income for the Federal Government does not come from:
8. The accumulation of reserves in insurance and pension funds is referred to as what type of savings?
9. An example of asset securitization is:
10. The largest annual supply of external funds for business corporations comes from issuance of which one of the following sources?
11. If the U.S. inflation rate is expected to be 3 percent next year, the European inflation rate is expected to be 4% next year, and the spot rate between the euro and dollar is $1.30, then according to purchasing power parity, we would expect the dollar to _________ against the euro from $1.30 to __________.
12. There are several problems that are unique to family businesses or ventures. Which of the following is not one of those problems?
13. Which of the following is considered to be the most risky?
14. Exports of goods and services minus imports.
15. Expenditures for goods and services plus gross investments by federal, state, and local governments.
16. A bond that is selling in over its par value.
17. In an inflationary period, interest rates have a tendency to:
18. A decrease in the supply for loanable funds accompanied by an increase in demand will cause interest rates to:
19. Key factors that influence currency exchange rates include all of the following except
20. Government spending on entitlement programs that must be funded according to existing law.
