FIN 364 FIN364 Midterm 1 Answers
Question 2.2. (TCO 1) The household sector is the largest surplus sector and invests in the capital market ______. (Points : 4)
Question 3.3. (TCO 1) Money markets are associated with _______ ; capital markets are associated with ______. (Points : 4)
Question 4.4. (TCO 1) Secondary capital markets have promoted economic growth in the United States because (Points : 4)
Question 5.5. (TCO 1) Which of the following is not a debt security? (Points : 4)
Question 6.6. (TCO 1) A conditional contract granting its holder the right to buy assets in the future is a ______. (Points : 4)
Question 7.7. (TCO 1) The ease with which a financial claim can be resold is its ______. (Points : 4)
8. (TCO 2) Who has a permanent vote on the FOMC? (Points : 4)
Question 9.9. (TCO 2) An increase in Federal Reserve float (Points : 4)
Question 10.10. (TCO 2) If the Fed wanted to increase the money supply immediately but just slightly, it would most likely ______. (Points : 4)
Question 11.11. (TCO 3) Unemployment should fall if ______. (Points : 4)
Question 12.12. (TCO 3) Monetary policies directed toward increased economic growth may have what impact upon the value of the dollar in relation to other currencies? (Points : 4)
Question 13.13. (TCO 3) The "tools" of monetary policy, whether "viable" or not, include all the following except ______. (Points : 4)
Question 14.14. (TCO 3) Monetarists and Keynesians agree that ______. (Points : 4)
Question 15.15. (TCO 2, 3) Which of the following was not a responsibility of the early Federal Reserve? (Points : 4)
Question 16.16. (TCO 4) Which of the following statements about interest rates is incorrect? (Points : 4)
Question 17.17. (TCO 4) Interest rates should increase if (Points : 4)
Question 18.18. (TCO 4) Interest rates move ______ with expected inflation and _____ with economic activity. (Points : 4)
Question 19.19. (TCO 4) If nominal interest rates are 10% and expected inflation is 5%, ______. (Points : 4)
Question 20.20. (TCO 4) With the real rate at 5%, most loans were made at 10% last year. This year, interest rates have declined to 8%. What was the expected inflation rate last year?(Points : 4)