In the United States, the most recent use of wage and price controls occurred during the:
a. Nixon administration.
b. Carter administration.
c. Reagan administration.
d. Clinton administration.
Exhibit 15-5 Balance sheet of Tucker National Bank Assets Liabilities
Required reserves $ Checkable deposits $100,000
Excess reserves 5,000
Loans 70,000
Total $100,000 Total $100,000 Suppose Brad Jones deposits $20,000 into his checking
account in the bank shown in Exhibit 15-5. The result would be that the bank must
increase its required reserves to:
a. $5,000.
b. $20,000.
c. $25,000.
d. $30,000.
Which of the following terms best describes a distribution of the net income of a
business to its owners?
a. Revenue
b. Dividends
c. Earnings
d. Monetary unit
In order for an economy to shift its production possibilities curve rightward, it must:
a. suffer resource unemployment.
b. experience an increase in its resources and/or an improvement in its technology.
c. use its resources more efficiently than at points along the curve.
d. all of these.
The poorest regions in the world, as measured by GDP per capita, are:
a. Latin America and the Caribbean.
b. the Middle East and North Africa.
c. Sub-Saharan Africa and South Asia.
d. Australia and New Zealand.
The Federal Reserve System is owned by:
a. federal government agencies such as the Treasury.
b. the Congress of the United States.
c. the banks that are members of the Federal Reserve System.
d. anyone who buys stock over the counter.
e. people who have deposits in member banks.
The term “open market operations” refers to the:
a. loan-making activities of commercial banks.
b. effect of expansionary monetary policy on interest rates.
c. operation of competitive markets in the banking industry as the result of deregulation.
d. buying and selling of government securities by the Federal Reserve.
Foreachstatementprovided,choosetheletteroftheappropriatetermfromthelistthateachstate
mentbestdescribes.Sometermsmaybeusedmorethanonce,whileothersarenotusedatall.
a. Capital stock
b. Asset
c. Owners’ equity
d. Time period
e. Dividends
f. Economic entity concept
g. Expense
h. Retained earnings
i. Cost principle
j. Creditor
k. Liability
l. Revenue
m. Going concern
n. Monetary unit
o. Corporation
A category on the balance sheet to indicate the owners’ direct investment in a
corporation.
In Exhibit 5-11, disposable personal income (DI) equals:
a. $5,810 billion.
b. $7,710 billion.
c. $5,910 billion.
d. $5,310 billion.
e. $5,060 billion.
Suppose Embryonica is an LDC with few skilled workers, a primitive banking system,
and very little electric power. What do we know for sure that Embryonica is lacking?
a. Infrastructure.
b. Political stability.
c. Agricultural sector.
d. Traditional values.
e. Poverty.