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1)
The Dow fell below 7,000 in 2009, only to start a bull market
run, reaching new highs above ________ in 2013.
A) 12,000
B) 10,000
C) 15,000
D) 19,000
Answer:[membership level="2,3,4,5"]
C[/membership]
2)
There are approximately how many commercial banks in the United
States currently?
A) 5,000
B) 6,200
C) 1,000
D) 1,250
Answer:[membership level="2,3,4,5"]
B[/membership]
3)
Which of the following solutions have been proposed to solve the
too-big-to-fail problem?
A) Break up large, systemically important financial institutions.
B) Impose higher capital requirements on large, systemically
important financial institutions.
C) Do nothing, since Dodd-Frank effectively eliminated the
problem.
D) All of the above have been proposed.
Answer:[membership level="2,3,4,5"]
D[/membership]
4)
Over ________ of the total daily volume in stocks is due to
institutions initiating trades.
A) 70%
B) 50%
C) 25%
D) 90%
Answer:[membership level="2,3,4,5"]
A[/membership]
5)
Figure 4.5
Figure 4.5 illustrates the effect of an increased rate of money supply growth. From the
figure, one can conclude that the liquidity effect is ________ than the expected inflation
effect and interest rates adjust ________ to changes in expected inflation.
A) smaller; quickly
B) larger; quickly
C) larger; slowly
D) smaller; slowly
Answer:[membership level="2,3,4,5"]
C
[/membership]
6)
The capital account describes ________.
A) international transactions that involve currently produced
goods and services
B) the flow of capital between the U.S. and other countries
C) payments between the U.S. and other countries
D) current IOUs of the U.S.
Answer:[membership level="2,3,4,5"]
B[/membership]
7)
As expected inflation increases for the coming year, we expected
the price of gold to ________ due to a rightward shift the in
________ curve.
A) increase; demand
B) increase; supply
C) decrease; demand
