Archives: Quiz

Financial intermediaries are specialists in the production of A) market failure. B) information. C) traded assets. D) commercial paper. Firm ownership in the United Kingdom is largest for A) individuals. B) financial institutions ‘ agents. C) financial institutions ‘ ownership/control. […]

A tradeoff between inflation and unemployment is shown directly by the __________ curve. A) Fisher B) Phillips C) Friedman D) aggregate demand Suppose that IS and LM intersect at full-employment output. A leftward shift of IS will be followed by […]

A sudden expectation of future depreciation of the dollar causes funds to flow __________ the United States and the dollar to actually __________. A) out of; depreciate B) out of; appreciate C) into; depreciate D) into; appreciate According to the […]

According to the pure expectations approach to term structure, investors view securities with different maturities as A) close substitutes. B) complements. C) inversely related. D) independent. Savings-and-loans were originally federally insured through the A) FDIC. B) FSLIC. C) NCUSIF. D) […]

Real wages will decline if A) money supply growth exceeds expectations. B) real interest rates rise. C) aggregate demand exceeds aggregate supply. D) money supply growth exceeds the inflation rate. An unexpected fall in the Purchasing Managers’ Index should send […]

According to the bank reserve equation, the largest factor supplying reserves to the banking system is A) Federal Reserve purchases of government securities. B) Treasury currency outstanding. C) float. D) currency in circulation. Federal Reserve policy appears to be A) […]

In the Keynesian model, a decline in interest rates will cause investment to A) increase. B) decline. C) remain unchanged. D) move erratically, depending on the interest rate effect on saving. In a liquidity trap, expansionary monetary policy has __________ […]

At __________ income levels on the LM curve, the interest rate must be __________. A) higher; lower B) lower; higher C) higher; unchanged D) higher; higher A bond has a face value of $1,000 and an annual coupon rate of […]

When currency outstanding increases, A) gold certificates rise. B) the money supply increases. C) Fed assets increase. D) bank deposits at the Fed decrease. Good news about an economic indicator __________ the denominator of a bond’s valuation formula, __________ the […]

A resilient market is one in which A) wide price swings occur when orders decline. B) volume picks up quickly when prices change. C) bid-asked spreads are large. D) volume is large. In a __________ plan, employees may choose __________. […]

According to Classical interest rate theory, which of the following will increase the equilibrium interest rate? A) An increase in investment B) An increase in saving C) An increase in real output D) A decrease in real output If an […]

Assume that there are no excess reserves, no savings accounts, and no currency held by the public. If the demand deposit expansion multiplier is 4, the required reserve ratio must be A) also 4. B) .2. C) .25. D) .5. […]

Drexel Burnham Lambert pioneered the widespread issuance of A) junk bonds. B) commercial paper. C) callable bonds. D) convertible bonds. The prepayment uncertainty associated with __________ makes the maturity of these securities uncertain. A) corporate bonds B) corporate stocks C) […]

With a surplus in our balance of payments, there is an excess __________ dollars in the foreign exchange market, causing the dollar to __________. A) demand for; appreciate B) demand for; depreciate C) supply of; appreciate D) supply of; depreciate […]

Assume that the yield on a security has two possible outcomes. There is a 60 percent chance it will yield 10 percent and a 40 percent chance it will yield 5 percent. The expected yield for this security is A) […]

An unexpected rise in Capacity Utilization should send bond prices __________ and stock prices __________. A) up; up B) up; down C) down; up D) down; down A decrease in money demand will shift the A) IS curve to the […]

Financial markets serve as the A) primary source of funds for financial intermediaries. B) means of converting cash into tangible assets. C) transmission mechanism between savers and borrowers. D) economic system’s ultimate source of funds. Which of the following appears […]

The two cornerstones of Classical economics are the Quantity Theory and A) Liquidity Preference Theory. B) disequilibrium analysis. C) Say’s Law. D) the Phillips Curve. In the Keynesian model when desired investment exceeds desired saving, A) inventories rise. B) inventories […]

The existence of a “bought deal” in public offerings of bonds came about as a result of A) shelf registration. B) a narrow underwriting spread. C) the need of investment banks to form syndicates before underwriting an issue. D) the […]

Assume that excess reserves are $35 million, demand deposits are $500 million, and total reserves are $135 million. The required reserve ratio is A) .07. B) .2. C) .25. D) .27. The annual dollar interest payment of a security is […]

A good example of using the discount rate to serve the lender of last resort role for the financial system occurred during the A) savings and loan crisis of the 1980s. B) stock market crash of 1987. C) sharp rise […]

Small firms borrow from “monitoring-intensive” financial intermediaries in __________ financial systems. A) banking-oriented B) markets-oriented C) banking- and markets-oriented D) socialist Which of the following is likely to have the widest bid-asked spread? A) A U.S Treasury bill B) A […]

Which of the following is not a permanent member of the FOMC? A) The president of the New York Fed B) The president of the Philadelphia Fed C) The chairman of the board of governors D) All of the above […]

Which of these government financing methods is generally the least inflationary? A) Printing currency B) Borrowing from the banking system C) Borrowing from the central bank D) Borrowing from the non-bank public Factors supplying and absorbing bank reserves constitute the […]

What economist in the early 20th century refined the use of the equation of exchange? A) Jean-Baptiste Say B) Irving Fisher C) Thomas Malthus D) Adam Smith A graphic depiction of the relationship between yield and maturity is A) the […]

An unexpected rise in the LEI should send bond prices __________ and stock prices __________. A) up; up B) up; down C) down; up D) down; down According to Keynes, it is __________ to have __________ holding money. A) possible; […]

The largest component of the money supply (M is A) time deposits. B) large CDs. C) demand deposits. D) coin and currency. Which of these financial institutions is the most likely to have a portfolio very similar to those of […]

Which theory of the term structure is usually criticized for underestimating the substitutability of different maturities of securities? A) The expectations theory B) The supply and demand approach C) The liquidity premium theory D) The preferred habitat approach A change […]

An increase 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 When the U.S. Treasury sells gold, the […]

Formed in 2004 and formalized in 2008, ________ makes up the largest trading block after NAFTA and the European Union. A) CAFTA-DR B) FTAA C) UNASUR D) MCAN E) GATT In ________ research, the objective is to gather preliminary information […]

Demographic characteristics, geographic characteristics, economic factors, sociocultural factors, and political and legal factors all help a company ________. A) determine a market’s potential B) determine a country’s degree of globalization C) evaluate its marketing objectives D) evaluate its value delivery […]

Mark has long supported a particular brand of footwear and has always bought that brand. Recently, the footwear manufacturer was embroiled in a controversy for using child labor at its manufacturing plants. Mark doubts the news reports and continues to […]

Which of the following is an example of cultural pollution? A) gasoline shortages B) congestion tolls C) street signs in cities D) overpasses in suburban areas E) billboards marring beautiful scenery A quantity discount is a price reduction for buyers […]

Josh received an e-mail stating that he had won a lottery of $500,000 from Lottors Corporation. The e-mail asked Josh to send his bank account details and social security number to transfer cash directly to his account. Josh did not […]

When a company sets a high price for a new product with the intention of reducing the price in the future, it is using the ________ pricing strategy. A) market-skimming B) cost-plus C) market-segmentation D) market-penetration E) competitive Rhodia invites […]

Stylize, Inc. opened an online store that triggered disagreements between headquarters and the firm’s exclusive dealers. This type of a disagreement is known as a(n) ________ conflict. A) vertical B) indirect C) horizontal D) selective E) multitiered Each competitor has […]

________ refers to gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses. A) Experimental research B) Constructive research C) Observational research D) Survey research E) Descriptive […]

Refer to the scenario below to answer the following question(s). Kimberly’s Crown sells and designs jewelry. Despite the jewelry’s popularity, products are available only through a few shopping stores across the country. What mode of transport should Kimberly use to […]

Which of the following uses a customer-centered ‘sense-and-respond” philosophy rather than a product-centered “make-and-sell” philosophy? A) market segmentation B) the production concept C) the marketing concept D) the inside-out perspective E) marketing myopia When companies set prices, the government and […]

Waldo Stores will reward an all-expense-paid trip to Hawaii to anyone who correctly guesses the date on which Waldo Stores was first established in the Boston area. Which type of sales promotion is evident here? A) contest B) sample C) […]

Joanna uses her smartphone to accomplish many tasks everyday. She is also an avid shopper. Which online marketing tool will benefit Joanna the most to help her shop? A) e-mail messages from sites to which she subscribes B) banking app […]

In the marketing mix, design, packaging, services, and variety can be categorized under ________. A) product B) price C) promotion D) place E) position One of the functions performed by a PR department is ________, which involves building and maintaining […]

A hybrid sales rep ________. A) works exclusively from remote locations B) is a modern cross between a field sales rep and an inside rep C) rarely engages in face-to-face interactions with customers D) performs sales audits E) sets the […]

Government agencies design ________ to encourage energy conservation and discourage smoking, excessive drinking, and drug use. A) club marketing programs B) social marketing campaigns C) consumer-generated marketing campaigns D) ambush marketing campaigns E) frequency marketing programs Which of the following […]

When Gary Hirshberg started the Stonyfield Farm yogurt company, he stated that his company could do better with less advertising, less marketing research, and more guerrilla marketing. He came up with innovative marketing ideas to promote his products such as […]

Which question should most likely be answered by all companies due to the rapid move toward globalization? A) How should we eliminate domestic competition? B) Should we diversify in a new business area in the home country? C) Where should […]

Which of the following focuses on finding new ways to solve customer problems and create more customer-satisfying experiences? A) concept testing process B) customer value proposition C) customer-centered new product development D) customer lifetime value E) team-based new product development […]

In ________, text-based ads and links appear alongside search engine results on sites such as Google, Yahoo!, and Bing. A) content sponsorships B) digital billboards C) digital catalogs D) contextual advertisements E) RSS feeds Brands in a market with many […]

Which of the following advertising slogans most likely represents a two-sided argument? A) Breakfast of champions B) Good to the last drop C) A diamond is forever D) The ultimate driving machine E) The next big thing is already here […]

The major activity in strategic planning is ________, whereby management evaluates the products and businesses that make up the company. A) SWOT analysis B) benchmarking C) business portfolio analysis D) breakeven analysis E) prospecting Eric Brown is a human resource […]