Archives: Quiz

223. In SEC v. Ginsburg, Ginsburg was CEO of a company that merged with another company, and he told his relatives that the merger might occur. Knowing that the stock price might then rise, the relatives bought stock in the […]

176. Under securities law, misleading information that would reasonably affect investment decisions by securities owners includes: a. overly optimistic statements by executives b. cautious speculation by shareholders about future profits c. commentary from an unbiased stock analyst d. a newspaper […]

Open-Economy Macroeconomics: Basic Concepts 7693 31. A tall latte in China costs 30 yuan. The same latte in the U.S. costs 4 dollars. If the exchange rate is 6.5 yuan per dollar then, the real exchange rate is a. .867 […]

119. Although securities sold under a private placement exemption are exempt from registration, the law requires that investors be given a , which is similar to a prospectus. a. private–placement memorandum b. semi-prospectus c. non-registration prospectus d. casual prospectus e. […]

Open-Economy Macroeconomics: Basic Concepts 7673 65. Other things the same, which of the following could be a consequence of an appreciation of the U.S. real exchange rate? a. John, a French citizen, decides that Iowa pork is now relatively less […]

60. Which class of securities is (are) exempt from the federal securities laws? a. issues by governments b. issues by corporations with assets under $1 million c. issues by corporations with over $1 billion in assets d. all of the […]

Open-Economy Macroeconomics: Basic Concepts 7653 25. Other things the same, the real exchange rate between American and Chinese goods would be higher if a. prices of Chinese goods were higher, or the number of yuan a dollar purchased was higher. […]

Multiple Choice 1. Securities are important because: a. they are the financial backbone of the U.S. economy b. business operations rely on securities for financing operations c. they are the major form of investment for pension funds d. all of […]

Open-Economy Macroeconomics: Basic Concepts 7633 209. In an open economy, gross domestic product equals $1,970 billion, government expenditure equals $300 billion, investment equals $500 billion, and net capital outflow equals $280 billion. What is consumption expenditure? a. $280 billion b. […]

59. In addition to civil and criminal penalties, agencies may seek injunctions to stop a person or business from engaging in behavior that violates a particular statute. a. True b. False 60. If necessary, a federal agency would be allowed […]

Open-Economy Macroeconomics: Basic Concepts 7613 158. A utilities company in the Netherlands buys wind generators made by a U.S. company. It pays from them with previously obtained dollars. By itself, this exchange a. increases both U.S. net exports and U.S. […]

True / False 1. Congress established the Interstate Commerce Commission as the first federal agency to regulate railroads. a. True b. False 2. The first federal administrative agency was the Federal Trade Commission. a. True b. False ANSWER: False POINTS: […]

Open-Economy Macroeconomics: Basic Concepts 7593 104. A Japanese bank buys U.S. government bonds, this purchase a. increases U.S. net capital outflow and has no affect on Japanese net capital outflow. b. increases U.S. net capital outflow and increases Japanese net […]

208. When a court reviews the way an agency interprets a statute, it will use which scope of judicial review: a. the lowest scope possible b. strict scrutiny compared to review of procedural requirements c. an arbitrary and capricious standard […]

Open-Economy Macroeconomics: Basic Concepts 7573 50. If a country had a trade surplus of $100 billion and then its exports rose by $40 billion and its imports rose by $30 billion, its net exports would now be a. $110 billion […]

170. The procedural requirement of have power to hear the case. a. exhaustion b. reviewability c. standing d. ripeness requires that the complaining party may seek judicial review only in courts that e. none of the other choices are correct […]

Open-Economy Macroeconomics: Basic Concepts Multiple Choice – Section 00: Introduction 1. Which type(s) of economies interact with other economies? a. only closed economies b. only open economies c. closed economies and open economies d. neither closed nor open economies ANSWER: […]

114. Administrative agencies may issue subpoenas to obtain business documents that agencies need for law enforcement. Subpoenas may: a. only be issued when there is good cause to believe that a violation of the law has occurred b. be used […]

Money Growth and Inflation 7541 19. The quantity equation is expressed as _____. The rate at which money changes hands is known as _____. ANSWER: M x V = P x Y, velocity POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: ECON.MANK.15.148 […]

Money Growth and Inflation 7529 60. According to the classical dichotomy, what changes nominal variables? What changes real variables? ANSWER: The classical dichotomy argues that nominal variables are determined primarily by developments in the monetary system such as changes in […]

60. Substantive (legislative) rules issued by agencies are: a. statements that provide the agency staff and public with guidance regarding what the agency believes a certain statute or regulation means b. administrative statutes with the same force and effect of […]

Money Growth and Inflation 7509 5. In the 1990s, U.S. prices rose at about the same rate as in the 1970s. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: ECON.MANK.15.151 – LO: 30-0 NATIONAL STANDARDS: United […]

Multiple Choice 1. The primary tool for local, state, and federal governments use to perform regulatory functions is the: a. administrative agency b. regulatory agency c. real agency d. courts e. police force 2. According to the Supreme Court, what […]

111. You would expect that an employer would not be liable for employment discrimination for having neutral work rules, such as educational requirements, that accidentally have adverse impact on certain groups. a. True b. False 112. In general, employers may […]

Money Growth and Inflation 7469 12. The shoeleather cost of inflation refers to a. the redistributional effects of unexpected inflation. b. the time spent searching for low prices when inflation rises. c. the waste of resources used to maintain lower […]

63. The Age Discrimination in Employment Act prohibits discrimination in employment against individuals over the age of 50. a. True b. False 64. The Age Discrimination in Employment Act provides weaker protections and remedies for people discriminated against in employment […]

Money Growth and Inflation 7449 218. If the real interest rate is 6 percent and the price level is falling at a rate of 2 percent, what is the nominal interest rate? a. 4 percent b. 6 percent c. 8 […]

True / False 1. The common law permits employers to hire and fire, within contractual limits, at-will. a. True b. False 2. Under the common law employers were generally free to discriminate as they wished. a. True b. False ANSWER: […]

Money Growth and Inflation 7429 177. During the 2008 financial crisis velocity decreased. This means that the rate at which money changed hands a. decreased. Other things the same, a decrease in velocity decreases the price level. b. decreased. Other […]

290. Which of the following questions would not violate the Americans with Disability Act to ask of a job applicant: a. how many sick days did you use last year? b. does stress at work ever bother you? c. are […]

Money Growth and Inflation 7409 137. The principle of monetary neutrality implies that an increase in the money supply will a. increase real GDP and the price level. b. increase real GDP, but not the price level. c. increase the […]

264. The Americans with Disabilities Act applies to employers with: a. fifteen or more employees b. twenty or more employees c. twenty–five or more employees d. fifty or more employees e. all employers, regardless of the size of their workforce […]

Money Growth and Inflation 7389 96. Economic variables whose values are measured in goods are called a. dichotomous variables. b. nominal variables. c. classical variables. d. real variables. ANSWER: d POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: ECON.MANK.15.148 – LO: 30-1 […]

210. Charles owns a club whose patrons are mostly African-American. He hires only African-Americans to serve drinks and food. Li (Asian-American) applies to work. He is qualified but is turned down. If Charles were to argue that the reason he […]

Money Growth and Inflation 7369 60. Open-market purchases by the Fed a. make the price level and value of money fall. b. make the price level rise, and make the value of money fall. c. make the price level and […]

165. Which of the following could be used as evidence in a discrimination trial that the employer’s rationale was just pretext for disparate treatment: a. inconsistency in decision made by the employer b. giving different reasons at different times for […]

Money Growth and Inflation 7349 20. In the long run, money demand and money supply determine a. the value of money and the real interest rate. b. the value of money but not the real interest rate. c. the real […]

112. Under the Age Discrimination in Employment Act employers: a. are not prohibited from cutting the health care benefits of employees over the age of 65 b. are prohibited from discriminating in employment against persons only over age 65 c. […]

Money Growth and Inflation Multiple Choice – Section 00: Introduction 1. Over the past 80 years, prices in the U.S. have risen on average about a. 2 percent per year. b. 4 percent per year. c. 3.6 percent per year. […]

60. Fred and Vinny work at Leo’s Used Car Lot. Fred dislikes Vinny, makes insults about Vinny‘s Iranian heritage, and treats him badly. Leo has heard the insults but does not reprimand Fred because Leo thinks Fred is right. Leo’s […]

7310 The Monetary System © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Monetary System 7311 70. During the early 1930s there […]

Multiple Choice 1. Historically, the common law permitted employers to: a. hire workers only with government approval b. fire workers only with government approval c. hire and fire which ever workers they wished d. fire workers for reasons listed in […]

The Monetary System 7291 21. Credit cards are a medium of exchange. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: ECON.MANK.15.143 – LO: 29-1 NATIONAL STANDARDS: United States – BUSPROG: Analytic TOPICS: DISC: Money Money Supply […]

125. Featherbedding, the illegal use of union funds for the personal benefit of union leaders, is outlawed by the Landrum- Griffin Act. a. True b. False 126. The Landrum-Griffin Act provides for federal regulation of internal union affairs. a. True […]

The Monetary System 7271 100. Refer to Scenario 29-2. Suppose that the Bank of Tazi changes the reserve requirement to 3 percent. Assuming that the banks still want to hold the same percentage of excess reserves what is the value […]

63. Under the hazard communication standard, an employer with toxic and explosive chemicals on the premises must have an ambulance available within five minutes. a. True b. False 64. Under the hazard communication standard, an employer must place all toxic […]

The Monetary System 7251 60. The Fed increases the reserve requirement, but it wants to offset the effects on the money supply. Which of the following should it do? a. sell bonds to increase reserves b. sell bonds to decrease […]

True / False 1. Employment-at–will means that, unless a contract holds otherwise, employers are free to fire workers at any time for any reason and employees are free to quit their jobs at any time for any reason. a. True […]

The Monetary System 7231 15. When the Fed purchases $1000 worth of government bonds from the public, the U.S. money supply eventually increases by a. more than $1000. b. exactly $1000. c. less than $1000. d. None of the above […]

321. Unions and employers who negotiate contracts have a duty to bargain in good faith. This means both sides must do all of the following except: a. come to a final agreement b. must be willing to make proposals c. […]