Archives: Quiz

The proportion of the money supply that is held in the form of currency is ultimately determined by A) the Federal Reserve. B) the public. C) the U.S. Congress. D) commercial banks. Long-term bonds are __________ than short-term bonds, and […]

If the inflation rate is 5 percent and the real rate of interest is 3 percent, the nominal interest rate is A) 8 percent. B) 5 percent. C) 3 percent. D) 2 percent. A speculator may choose to buy a […]

Underwriting spreads on equity issues are much __________ than on debt issues because stock prices are so __________ relative to bond prices. A) smaller; steady B) smaller; volatile C) larger; steady D) larger; volatile The United States has a balance […]

An indication to the Open Market Account Manager that commercial banks are experiencing a liquidity shortage would be a A) falling federal funds rate. B) rising federal funds rate. C) falling discount rate. D) rising discount rate. “Bad news” about […]

The problem of vesting and funding are avoided by __________ pension plans. A) both defined benefit and defined contribution B) defined benefit C) defined contribution D) neither defined benefit nor defined contribution Which of the following is likely to have […]

The price the United States and the United Kingdom pay for having rather liquid securities markets is A) fluctuations in securities prices. B) unresolved stockholder-lender and manager-stockholder conflicts. C) allowing banks to hold substantial ownership shares in large firms. D) […]

If the federal funds rate is __________ the equilibrium interest rate, banks would try to __________ in the federal funds market. A) above; borrow B) below; lend C) below; borrow D) None of the above. Which of the following groups […]

Among state member and national banks, __________ have federal deposit insurance through the FDIC. A) all B) virtually all C) a minority D) none of them Regulation Q was responsible for the drop in importance of __________ as a source […]

“Good news” about an expenditure-related indicator drives bond prices __________ and stock prices __________. A) up; up B) up; down C) down; up D) down; down Monetarists differ from Classical economists in that they argue that A) changes in the […]

This basic pattern emerges in the United States: financial institutions are more heavily regulated A) the smaller is their typical contributor. B) the larger is their typical contributor. C) the riskier are their assets. D) the larger they are in […]

The LM curve automatically shifts to the left when the intersection point of the IS and LM curves occurs at a point A) beyond full-employment income. B) in the liquidity trap. C) less than full-employment income. D) where planned saving […]

In the ISLM framework, a declining price level causes A) interest rates to rise. B) income to fall. C) saving to rise. D) the LM curve to shift to the right. The Federal Reserve econometric model estimates that it takes […]

If the required reserve ratio is .2 and reserves initially decline by $25, demand deposits can decline by A) $125. B) $50. C) $25. D) $5. In the Keynesian model, money demand is positively related to A) income. B) interest […]

Monetarists tend to think that the aggregate demand curve is A) stable. B) vertical. C) horizontal. D) sensitive to changes in investment spending. If all future expected short-term interest rates are equal to the current short-term interest rate, the expectations […]

Which of the following futures contracts is available on the various commodity exchanges in the United States? A) Treasury bond futures B) Investment-grade bonds C) Over-the-counter stocks D) U.S. savings bonds Assume an asset has a 50 percent probability of […]

As part of the “exchange rate effect of monetary policy,” a higher money supply causes __________ of the domestic currency and thus __________ net exports. A) appreciation; rising B) appreciation; falling C) depreciation; rising D) depreciation; falling Suppose the IS […]

Since 1970 there has been a clear increase in the proportion of the banking industry assets made up of A) mortgage loans. B) state and local government securities. C) cash. D) business loans. A President who favors the use of […]

When setting up a videoconference with international audience members, choose a time that is convenient for everyone. Handwritten thank you letters are unprofessional. Answer: F In a chronological sequence, a description begins at one location and ends at another. Answer: […]

Effective technical documents can be created without first performing an audience analysis. Visuals used with definitions do not need to be labeled. Answer: F Well-designed documents address a diversity of readers. Answer: T Distorting images may help you create a […]

Varying the margins throughout a document creates a unified appearance. Items in a list need not be written in similar grammatical form. Answer: F All documents are at least partly persuasive. Answer: T Some short documents may not need headings. […]

An email ‘signature’is not legally binding. Key words and search phrases should be as general as possible. Answer: F A set of instructions usually follows a problem/solution sequence. Answer: F Always ask for permission to include an individual as a […]

Subject directories are indexes of information that are maintained by computer programs. Be diplomatic in a refusal letter. Answer: T A document prepared for an international audience should include visuals that are simple and honest. Answer: T Tables are appropriate […]

___________text has even right margins. Formal procedures designed to give a company an official record of a procedure and how it should be performed are called . Answer: Standard operating procedures The list of references, appendices, glossary, and other supplemental […]

The three purposes of technical documents are to____________,____________, and__________. A résumé highlights skills relevant to aparticular job. Answer: functional Summaries may have ethical pitfalls. Answer: T The two broad categories of descriptions are ___________descriptions and _____________descriptions. Answer: process, product Answer: […]

___________is the process of breaking information into smaller units. Any area of a page that is not filled with visual elements, graphics, or text is called. Answer: white space For most software products, online instructions have largely replaced user manuals. […]

Writing summaries requires distinguishing between essential and superfluous details. Formal reports are typically analytical reports that may lead to recommendations. Answer: T An___________________ is a controlled form of observation designed to verify an assumption. Answer: experiment The logical flow of […]

Most formal reports are written for decisionmakers. __________ proposals are written in response to a request from a manager or customer, whereas____________ proposals are written without having been requested. Answer: Solicited, unsolicited ____________involves creating text-based messages on a computer or […]

Always assume that any email message you send will be read by unintended audiences. Icons resemble the items they represent. Answer: T In addition to content,organization,style,and design,ask usability testers about the________________, ________________ and______________________ consideration of a document. Answer: ethical, cultural, […]

Rather than review a document’s contents, closing summaries introduce new information and ideas. The three categories of proposals are informational, progress, and sales. Answer: F The three categories of definition are_______________, _______________, and _____________ Answer: parenthetical, sentence, and expanded A […]

The three types of grid patterns for documents are________,________, and___________. Corporate Websites are rarely interactive. Answer: F A company’s social media director determines the most effective uses of social media to reach customers. Answer: T Acknowledging contributors to your proposal […]

The career-objective statement should be as vague as possible to cover a range of job possibilities. The passive voice should always be avoided. Answer: F Though your signature is required on a workplace letter, it does not indicate that you […]

In technical writing, the topic sentence is usually placed at the end of a paragraph. The title of a description should be clear and limited. Answer: T Photographs are helpful for showing realistic views. Answer: T The relationship connection is […]

Definitions can have societal implications. Action verbs and bulleted lists are useful in instructional brochures. Answer: T Formal proposals should be presented only in email or memo format. Answer: F Any item can be described in only one way. Answer: […]

The primary purpose of a document should affect the document’s overall shape and content. When added together, the pieces of a pie chart will total 100%. Answer: T The headings of a technical document should always be created first, before […]

Which of the following is a correct statement regarding the balance sheet of the Federal Reserve? A) Fed assets = Fed liabilities + Federal Reserve notes B) Fed assets = Fed liabilities + Fed capital accounts C) Fed assets = […]

Which of the following will cause the LM curve to shift to the left? A) A decrease in investment B) A decrease in money demand C) An increase in velocity D) A decrease in the money supply A vertical Phillips […]

A nation running a persistent balance of payments surplus while part of a fixed exchange rate system would be required to __________ international reserves in an effort to prevent its currency from __________. A) amass; appreciating B) amass; depreciating C) […]

The portfolios of property and casualty insurance companies are generally concentrated in A) liquid assets. B) mutual funds. C) primary securities. D) U.S. Treasury bonds. Paul Oldy just purchased a $2,000 face value bond with. The bond pays $45 in […]

For long-term stopgap financing of large projects, city governments can issue A) tax-anticipation notes. B) bond-anticipation notes. C) general obligation bonds. D) revenue bonds. According to the Keynesian view of the demand for money, an increase in uncertainty will cause […]

Which of the following financial institutions is likely to have a preferred habitat in long-term securities? A) Commercial banks B) Money market mutual funds C) Life insurance companies D) Credit unions In terms of the aggregate demand and supply framework, […]

Along an IS curve as income levels __________, saving is larger, so the interest rate must be __________ to expand the level of investment so it will be equal to saving. A) increase; higher B) increase; lower C) decrease; higher […]

An unexpected rise in Housing Starts should send bond prices __________ and stock prices __________. A) up; up B) up; down C) down; up D) down; down The distinction between a ‘secured” lender and an “unsecured” lender is that in […]

Which of the following is not responsible for the post-World War II rise in M1 velocity? A) The relatively wide historical definition of M1 B) The increasing attractiveness of other categories of financial assets C) Attractive yield on financial assets […]

The expenditure multiplier is greatest when the A) LM curve is positively sloped. B) LM curve is horizontal. C) IS curve is vertical. D) LM curve is vertical. An unexpected fall in durable goods orders should send bond prices __________ […]

The most widely used measure of interest rates in bond markets is the A) coupon rate. B) discount rate. C) yield to maturity. D) current yield. An effective way to restore credibility to monetary authorities after a period of hyperinflation […]

The __________ is always larger than the __________. A) yield on a discount basis; coupon equivalent yield B) yield on a discount basis; bond equivalent yield C) coupon equivalent yield; yield on a discount basis D) None of the above. […]

Deposits with the Federal Reserve Bank are part of a commercial bank’s A) capital. B) reserves. C) loans. D) liabilities. The behavior of many savings-and-loans in the 1980s appears to be evidence __________ the existence of __________ problem in deposit […]

In Keynes’ concept of the liquidity trap, A) monetary policy becomes more effective as interest rates fall below normal. B) people wish to hold more bonds as interest rates fall below normal. C) people wish to hold fewer bonds as […]

__________ argue that any exogenous decrease in investment spending would be countered automatically by either increased consumption or interest-sensitive investment spending. A) Monetarists B) Keynesians C) Classical economists D) None of the above. Most economists believe the LM curve to […]

The Gramm-Leach-Bliley Act of 1999 A) allowed the creating of financial holding companies. B) set conditions under which an FHC can set up a merchant bank. C) brings the U.S. closer to the universal banking model. D) does all of […]