Archives: Quiz

The federal government may prevent a company from adding products through acquisitions if acquisition threatens to lessen competition. E-procurement has caused the time between order and delivery to increase significantly. Answer: FALSE A good competitor plays by its own rules […]

Marketing logistics involves planning, implementing, and controlling the physical flow of goods, services, and related information from points of origin to points of consumption to meet customer requirements at a profit. Internal information is almost always sufficient for making marketing […]

Which of the following is the most likely result of a marketing strategy that attempts to serve all potential customers? A) All customers will be delighted. B) Customer-perceived value will increase. C) All customers will directly turn into customer evangelists. […]

Which of the following is true about business-to-business e-procurement? A) E-procurement increases transaction costs for suppliers. B) Because of an overwhelming demand, e-procurements usually have a huge time gap between order and response. C) Many buyers now use the power […]

________ means marketing a product in a foreign market without making any changes to the product. A) Product adaptation B) Product invention C) Communication adaptation D) Straight product extension E) Product augmentation Orion Inc. markets luxury watches. It targets the […]

Which of the following marketing strategies is most suitable for smaller firms with limited resources? A) mass marketing B) undifferentiated marketing C) niche marketing D) differentiated marketing E) one-to-one marketing Almost all major purchases result in ________, or discomfort caused […]

________ occurs when two established brand names of different companies are used on the same product. A) Market diversification B) Niche marketing C) Co-branding D) Licensing E) Cannibalization Marketing stimuli consist of the four Ps. Which of the following is […]

Which of the following is the most likely circumstance for a company to decide to do little or no test marketing? A) when the new product requires a major investment B) when management lacks confidence in the new product C) […]

What is included in the first part of a marketing strategy statement? A) distribution strategy B) product longevity C) long-run sales goals D) promotional mixes E) target market description New technologies most likely lead to ________. A) economic imbalance in […]

What sets the floor for product prices? A) consumer perceptions of the product’s value B) product costs C) competitors’ strategies D) advertising budgets E) market competition Workers, managers, and members of the board are examples of ________ publics. A) general […]

Which of the following message execution styles focuses on the company’s skill and knowledge in making the product? A) endorsement B) scientific evidence C) slice of life D) technical expertise E) testimonial evidence A marketing research company asked members of […]

Mission statements should be ________. A) meaningful and specific yet motivating B) technology oriented C) written solely for public relations purposes D) focused on increasing sales or profits E) strictly product oriented Which of the following is a disadvantage of […]

________ are manufacturer-owned and operated stores that offer prices as low as 50 percent below retail on a wide range of mostly surplus, discounted, or irregular items. A) Category killers B) Factory outlets C) Specialty stores D) Superstores E) Power […]

Information in a company’s database can come from many sources. An advantage of harnessing such information is to ________. A) eliminate employee turnover B) achieve a high degree of employee empowerment C) gain competitive advantage D) gain access to mass […]

Which of the following would most likely be included in the written materials prepared by PR professionals to reach and influence target markets? A) employee code of conduct B) annual reports C) memorandum of association D) advertisement jingles E) white […]

Which of the following is a price adjustment strategy that considers how a customer’s perception of a product is influenced by its price? A) captive product pricing B) psychological pricing C) by-product pricing D) promotional pricing E) international pricing The […]

Which of the following types of research would be best suited for understanding the attitudes of consumers who buy a particular brand of soft drink? A) internal research B) descriptive research C) causal research D) exploratory research E) demographic research […]

Some firms define their purpose in narrow product terms. Others that define their purpose in broad social terms follow ________. A) societal marketing B) sense-of-mission marketing C) consumer-oriented marketing D) customer-value marketing E) consumerism A(n) ________ consists of one or […]

In the ________ stage of the new product development process, products undergo rigorous tests to make sure that they perform safely and effectively, or that consumers will find value in them. A) product design B) idea generation C) concept development […]

Immediately after being collected, taxes are deposited in A) tax and loan accounts. B) the Federal Reserve Bank of New York. C) Federal Reserve district banks around the country. D) the Congressional Vault. Which of these indicators is probably the […]

In a world of rational expectations, A) an anticipated increase in money supply leads immediately to higher nominal interest rates. B) an anticipated increase in money supply leads immediately to lower nominal interest rates. C) an unanticipated increase in money […]

A reduction in housing starts, typically due to __________ interest rates, is often thought to precede __________. A) rising; an expansion B) rising; a recession C) falling; an expansion D) falling; a recession If the Treasury borrows from the public […]

If banks borrowed from the Fed when the federal funds rate was below its target level A) the supply of reserves would decrease and the federal funds rate could fall even further. B) the supply of reserves would increase and […]

Any decrease in autonomous spending will A) shift the IS curve to the left. B) shift the IS curve to the right. C) cause a movement down along an IS curve. D) cause a movement up along an IS curve. […]

Which of the following investments does not make interest payments annually but is sold at a discount, with the face value of the security paid at maturity? A) Preferred stock B) Preferred bonds C) Zero-coupon bonds D) Convertible preferred stock […]

Which type of financing requires the largest minimum size of the borrower? A) mezzanine funds B) public debt C) venture capital funds D) public equity Property and casualty insurance companies tend to invest heavily in municipal bonds because A) the […]

A repurchase agreement of government securities by the Fed A) permanently increases bank reserves. B) temporarily increases bank reserves. C) permanently reduces bank reserves. D) temporarily reduces bank reserves. “Institutionalization” refers to the fact that a(n) __________ percentage of funds […]

The bid-asked spread is likely to be greater on securities that are A) issued in larger denominations. B) have low market risk. C) less liquid. D) traded in a deep market. Securities dealers reduce the uncertainty associated with mortgage debt […]

As of the end of 1994 the country in our survey with the smallest stock market in dollar terms was A) the United States. B) the United Kingdom. C) Japan. D) Germany. The two major types of financial systems are […]

An investor pays $1,230 for a bond with a face value of $1,000 and an annual coupon rate of 9 percent. The investor plans to hold the bond until its maturity date in eight years. The bond has a yield […]

Adaptive expectations are “__________” according to the New Classical economists because they __________ information it is possible to use in making a forecast. A) rational; include all B) rational; exclude some C) irrational; include all D) irrational; exclude some When […]

Monetarists assume that there is a powerful direct link between aggregate demand and A) velocity. B) real money balances. C) wage rates. D) interest rates. In actual financial markets, securities are __________ divisible, which __________ a type of market imperfection. […]

Which of these will cause the equilibrium interest rate to rise? A) A decrease in the supply of loanable funds B) A decrease in the demand for loanable funds C) An increase in the supply of loanable funds D) A […]

If the federal funds rate is above the equilibrium federal funds rate, then the supply of reserves would be __________ than the demand for reserves and the banks would try to __________ reserves causing the federal funds rate to fall. […]

Which of the following situations is likely to lead to dynamic open market operations? A) A recession B) An increase in Federal Reserve float C) An increase in Treasury cash holdings D) An increase in currency outstanding Since the founding […]

The most popular floating rate in swaps is A) LIBOR. B) the Treasury note rate. C) the prime rate. D) the six-month Treasury bill rate. For banks, net interest income is becoming a __________ proportion of their total operating income […]

A decrease in aggregate demand in the Classical model leads to A) lower prices and lower output. B) lower prices and higher output. C) lower prices and unchanged output. D) unchanged prices and output. Portfolio diversification is ineffective when A) […]

An inflation forecast developed in a Monetarist framework is likely to focus on A) Federal Reserve policy. B) interest rate movements. C) household and business spending decisions. D) the velocity of money. Moral hazard is a problem A) peculiar to […]

Suppose that for several periods the aggregate demand and supply curves have been intersecting at the same point, and at full employment. Then the central bank increases money growth as a result of an announced policy change. Under the assumption […]

If the yield on short-term securities is greater than the yield on comparable long-term securities, the yield curve will have a A) positive slope. B) negative slope. C) constant slope. D) zero slope. With a rise in government expenditure we […]

The expenditure multiplier in the ISLM framework is smaller than that derived from the simple Keynesian model because A) velocity is always assumed to be constant. B) the economy is assumed to be in the liquidity trap. C) the aggregate […]

When the economy is in the liquidity trap, A) velocity is constant. B) monetary policy is impotent. C) fiscal policy is impotent. D) income is zero In markets-oriented systems, handling of the manager-stockholder conflict in large firms is through A) […]

One-year securities are currently yielding 8 percent. You expect one-year securities to yield 10 percent next year. Currently, two-year securities are yielding 9.5 percent. Given this situation, portfolio managers would __________ two-year securities, pushing their yield __________. A) buy; up […]

The ex ante real interest rate is __________, while the ex post real rate is __________. A) the nominal interest rate minus expected inflation; the nominal interest rate minus actual inflation B) the nominal interest rate minus actual inflation; the […]

Funds that used to flow through intermediated markets and now flow through financial markets are A) intermediated. B) indirectly financed. C) securitized. D) saved. If the government collects taxes to pay for expenditures of an equal amount, bank reserves A) […]

__________ the required reserve ratio will __________ the potential for multiple expansion. A) Raising; increase B) Lowering; decrease C) Raising; decrease D) None of the above. If inflation becomes a serious problem, a Monetarist-oriented President is likely to favor a […]

Which of the following best describes the ideal quantity of money? A) It equals the amount of spending. B) It equals the level of GDP. C) It equals the price level. D) It stabilizes prices while allowing a high level […]

Each regional Federal Reserve Bank is owned by A) the member banks in its district. B) the Federal Deposit Insurance Corporation. C) those who purchase its stock on the open market. D) the taxpayers in its district. With respect to […]

__________ occurs because firm owners have an incentive to understate their true riskiness to borrow on a more favorable basis. A) Moral hazard B) Adverse selection C) Manager-stockholder conflict D) Manager-lender conflict Suppose that during a given month 500,000 persons […]

The ultimate source of liquidity in a modern industrial economy is the A) government Treasury. B) central bank. C) capital market. D) liquidity market. “A rise in government expenditures raised output in the short run, but left output unaffected in […]