Final-Macroeconomics

Final-Macroeconomics - Macroeconomics Final Exam STUDENT'S...

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Macroeconomics Final Exam STUDENT’S NAME _________ ___________________________ INSTRUCTIONS: 1. PLEASE PRINT YOUR NAME. 2. PRINT YOUR ANSWERS CLEARLY. MULTIPLE CHOICE QUESTIONS ___B____1. Short-term bonds are generally a. less risky than long-term bonds and so they feature higher interest rates. b. less risky than long-term bonds and so they feature lower interest rates. c. more risky than long-term bonds and so they feature higher interest rates. d. more risky than long-term bonds and so they feature lower interest rates. ____A___2. Compared to stocks, bonds offer the holder a. lower risk and lower potential return. b. lower risk and higher potential return. c. higher risk and lower potential return. d. higher risk and higher potential return. ___B____3. All or part of a firm’s profits may be paid out to the firm’s stockholders in the form of a. retained earnings. b. dividends. c. interest payments. d. capital accounts. ____B___4. Compared to stocks, bonds offer the holder a. lower risk and higher potential return. b. lower risk and lower potential return. c. higher risk and lower potential return. d. higher risk and higher potential return. ____D___5. In a closed economy, what does ( Y - T - C ) represent? a. national saving b. government tax revenue c. public saving d. private saving 1
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____A____6. The source of the supply of loanable funds a. is saving and the source of demand for loanable funds is investment. b. is investment and the source of demand for loanable funds is saving. c. and the demand for loanable funds is saving. d. and the demand for loanable funds is investment. ___D____7. If the quantity of loanable funds demanded exceeds the quantity of loanable funds supplied, a. there is a surplus and the interest rate is above the equilibrium level. b. there is a surplus and the interest rate is below the equilibrium level. c. there is a shortage and the interest rate is above the equilibrium level. d. there is a shortage and the interest rate is below the equilibrium level. ___C____8. If a reform of the tax laws encourages greater saving, the result would be a. higher interest rates and greater investment. b. higher interest rates and less investment. c. lower interest rates and greater investment. d. lower interest rate and less investment. ____B___9. The length of time until a bond matures is called the a. perpetuity. b. term. c. maturity. d. intermediation. ____C___10. Two bonds have the same term to maturity. The first was issued by a state government and the probability of default is believed to be low. The other was issued by a corporation and the probability of default is believed to be high. Which of the following is correct? a. Because they have the same term to maturity the interest rates should be the same. b.
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Final-Macroeconomics - Macroeconomics Final Exam STUDENT'S...

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