1)
The efficient market hypothesis does not have to imply that
financial markets are efficient.
Answer:
2)
Mutual funds accounted for $5.3 trillion, or 27%, of the $19.5
trillion U.S. retirement market at the beginning of 2013.
Answer:
3)
Hedge funds have a minimum investment requirement of between
$100,000 and $20 million, with the typical minimum investment
being $1 million.
Answer:
4)
A speculative attack on the currency of a country is the focus of
Stage Two of a financial crisis in an emerging market economy.
Answer:
5)
Risk, liquidity, and income tax rules all play a role in
determining the risk structure of interest rates.
Answer:
6)
China is in an early state of development, with a per capita
income that is still less than $10,000, one-fifth of the per
capita income in the United States.
Answer:
7)
Quantitative easing and credit easing are essentially the same
thing.
Answer:
8)
There are two kinds of exchange rate transactions: spot
transactions and forward transactions.
Answer:
9)
Which of the following are true statements?
A) The FOMC usually meets every six weeks to set monetary policy.
B) The FOMC issues directives to the trading desk at the New York
Fed.
C) Designers of the Federal Reserve Act did not envision the use
of discount lending as a monetary policy tool.
D) All of the above are true statements.
E) Only A and B of the above are true statements.
Answer:
10)
Which of the following statements regarding the funding of Social
Security is false?
A) In 2010, workers contributed 6.2% of their wages up to a
maximum of $106,800.
B) Employers contribute an amount equal to the workers’
contributions.
C) Interest, dividend, rent, and royalty income are also taxed to
provide supplemental funds for Social Security.
