math1
Week 3
1. Also known as the Fed.
2. ____________________ provide the record-keeping mechanism for showing ownership of the financial instruments used in the flow of financial funds between savers and borrowers and record revenues, expenses, and profitability of organizations that produce and exchange goods and services.
3. This involves financial planning, asset management, and fund-raising decisions to enhance the value of businesses.
4. Involves monitoring and managing the firm’s day-to-day cash inflows and outflows.
5. The Fed controls the _____ supply.
6. The basic requirements for an effective financial system in a developed economy include:
7. Involves analyzing and making recommendations on the investment potential of specific securities.
8. Involves evaluating financial performance and preparing financial plans.
9. __________ are where financial contracts that derive their values from underlying debt and equity securities are originated and traded.
10. The Federal Reserve Banks are owned by
11. ___________ is an accommodative activity of the Federal Reserve System.
12. The purpose of Regulation Z is to
13. An effective financial system must have:
14. Formed to support mortgage markets by purchasing and holding mortgage loans,
15. Member banks of the Federal Reserve System
16. History generally supports the contention that under the guidance of Paul Volcker, a (n) ____________ Fed policy brought down the double-digit inflation of the 1970s and the early 1980s, and the Federal Open Market Committee consistently responded to his leadership.
17. The interest rate that a bank must pay to borrow from its regional federal reserve bank is called
18. Which of the following is a method by which the Federal Reserve establishes monetary policy?
19. The basic policy instruments that the Fed uses to execute monetary policy include all of the following except
20. This act sets up a procedure for correcting mistakes on credit records and requires that records be used only for legitimate business purposes.
Week 7 quiz
1. Equity security that has a senior claim to the firm’s earnings and assets over common stock.
2. Estimates of “using up” plant and equipment for business purposes are called
3. The U.S balance of payments involves all of the following except
4. During the early years of the life stage of a typical corporation, the:
5. These bonds have their coupons reset every two or three years to reflect the current interest rate environment and any changes in the firm’s credit quality.
6. It was created to help economic growth in developing countries.
7. Income for the Federal Government does not come from:
8. The accumulation of reserves in insurance and pension funds is referred to as what type of savings?
9. An example of asset securitization is:
10. The largest annual supply of external funds for business corporations comes from issuance of which one of the following sources?
11. If the U.S. inflation rate is expected to be 3 percent next year, the European inflation rate is expected to be 4% next year, and the spot rate between the euro and dollar is $1.30, then according to purchasing power parity, we would expect the dollar to _________ against the euro from $1.30 to __________.
12. There are several problems that are unique to family businesses or ventures. Which of the following is not one of those problems?
13. Which of the following is considered to be the most risky?
14. Exports of goods and services minus imports.
15. Expenditures for goods and services plus gross investments by federal, state, and local governments.
16. A bond that is selling in over its par value.
17. In an inflationary period, interest rates have a tendency to:
18. A decrease in the supply for loanable funds accompanied by an increase in demand will cause interest rates to:
19. Key factors that influence currency exchange rates include all of the following except
20. Government spending on entitlement programs that must be funded according to existing law.