BBA-QUIZ-A-D2-4 - FIN 301 QUIZ 1 Class: D _ Name:_ Student...

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FIN 301 QUIZ 1 Class: D ____ Name:___________________ Student I.D.:________________________ A Multiple Choice (60%) ( ) 1. The gross domestic product is A) the value of all wealth in an economy. B) the value of all goods and services sold to other nations in a year. C) the market value of all final goods and services produced in an economy in a year. D) the market value of all intermediate goods and services produced in an economy in a year. ( ) 2. Which of the following items are not counted in U.S. GDP ? A) your purchase of a new Ford Mustang B) your purchase of new tires for your old car C) GM's purchase of tires for new cars D) a foreign consumer's purchase of a new Ford Mustang ( ) 3. The measure of the aggregate price level that is most frequently reported in the media is A) GDP deflator B) producer price index C) consumer price index D) personal consumption expenditure deflator ( ) 4. Financial markets have the basic function of A) getting people with funds to lend together with people who want to borrow funds. B) assuring that the swings in the business cycle are less pronounced. C) assuring that governments need never resort to printing money. D) providing a risk-free repository of spending power. ( ) 5. The primary liabilities of a commercial bank are A) bonds. B) mortgages. C) deposits. D) commercial paper. ( ) 6. Increasing the amount of information available to investors helps to reduce the problems of the financial markets. A) adverse selection; moral hazard B) adverse selection; risk sharing C) moral hazard; transactions costs D) adverse selection; economies of scale 1
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( ) 7. The purpose of the disclosure requirements of the Securities and Exchange Commission is A) increase the information available to investors. B) prevent bank panics. C) improve monetary control. D) protect investors against financial losses. ( ) 8. The regulatory agency that sets reserve requirements for all banks is A) the Federal Reserve System. B) the Federal Deposit Insurance Corporation. C) the Office of Thrift Supervision. D) the Securities and Exchange Commission. ( ) 9. Of money's three functions, the one that distinguishes money from other assets is its function as a A) store of value. B) unit of account. C) standard of deferred payment. D) medium of exchange. ( ) 10. When we say that money is a stock variable, we mean that A) the quantity of money is measured at a given point in time. B) we must attach a time period to the measure. C) it is sold in the equity market. D) money never loses purchasing power. ( ) 11. If an individual moves money from currency to a demand deposit account, A) M1 decreases and M2 stays the same. B) M1 stays the same and M2 increases. C) M1 stays the same and M2 stays the same.
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This note was uploaded on 11/07/2010 for the course BBA 4565 taught by Professor Chushunhe during the Spring '10 term at University of Macau.

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BBA-QUIZ-A-D2-4 - FIN 301 QUIZ 1 Class: D _ Name:_ Student...

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