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1Which of the following is true regarding reserve requirements?Higher reserve requirements mean banks have more money to lend.Lower reserve requirements mean consumers have more difficulty borrowing money.Lower reserve requirements mean banks must hold more money in cash or deposit.Higher reserve requirements mean banks have less money to lend.CONCEPTFederal Reserve2Which of the following correctly describes short term financing?Is repaid within a year and a half Is more risky for the amount of moneyIs less risky for the amount of timeIs harder to get than long term financingCONCEPTTrade Credit and Promissory Notes3Jenna and the partners in her firm met with an entrepreneur who owned a company that needed funding. Jenna led her team in closely evaluating the company's financial documents to determine if the project would be too riskyto invest in. Jenna's group was interested in helping a company grow rather than just getting it started.Which of the types of investor below is described in this scenario?
Venture capitalistPersonal investorAngel investorLending institutionCONCEPTInvestors and Private Placement4Which of the following activities is overseen by the Federal Reserve?Approval of business mergersPublic trading of stocksPrinting of moneyPurchasing corporate bondsCONCEPTFederal Reserve5Which of the following scenarios illustrates a capital gain?Warren bought 100 shares of stock for $10 per share. He sold the stock three months later for $8 per share.Warren was paid an extra 15 shares in the company stock at the end of the second quarter based on the earnings the company posted.Warren was paid $.25 a share in cash at the end of the first quarter from the earnings the company posted.
Warren bought 100 shares of stock for $10 per share. He sold the stock three months later for $12 per share.