Chapter 20—The Firm in a National and a Global Setting Key
1. The ebbs and flows of the economy over time is called the
2. The sales of firms can
3. The tools of the Federal Reserve include
4. Open market operations tries to target
5. Monetary policy attempts to control
6. When the Fed buys Treasury securities
7. The Treasury finances government spending by
8. The amount of money that a bank must keep on hand per dollar of deposits is called
9. If the Fed wants to lower the money supply
10. The total money supply is largely determined by
11. If the money supply grows faster than the rate of growth in GDP
12. The national debt
13. Keynesians tend to believe
14. Free market economists
15. The Employment Act of 1946 was built largely out of
16. The financial crisis of 2008
17. One can invest in a pool of mortgages by buying
18. The mortgage crisis started to come to a head
19. Subprime mortgages
20. Austrian economists
21. The exchange rate
22. If it takes more dollars to acquire one unit of a foreign currency,
23. A fixed exchange rate regime
24. A flexible exchange rate regime
25. Deciding which exchange rate should be used in the presentation of financial statements
26. A company can have exchange rate exposure
27. A fear in investing in China
28. In a forward contract
29. A company can protect against exchange rate risk
30. Global capital markets have which of the following characteristics
31. The Federal Reserve conducts monetary policy.
32. Open market operations is a tool the Fed uses to effect the federal funds rate.
33. Reserve requirements is the rate the Fed charges when it lends money to banks.
34. The Treasury also implements monetary policy.
35. By buying and selling Treasury securities the Federal Reserve affects tax collections by the IRS.
36. Keynesians tend to not believe in the stability of free markets.
37. Mortgage backed securities had a role in the 2008 financial crisis.
38. The behavior of exchange rates has very little to do with the values used in financial statements.
39. A fixed exchange rate regime enhances the power of a country’s central bank.
40. The global capital market is very competitive and efficient.