FINA3317 PracticeMidTermExamSpring2014solutions

E dividend payments are considered a cost of business

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Unformatted text preview: turity. E. Dividend payments are considered a cost of business, and are therefore deducted from income before taxes are computed. F. None of the above. _____8. Which of the following will likely be associated with an expansion of the money supply? (please answer all that apply) [Ch. 9&10] A. Open market operations to purchase T-Bonds. B. Open market operations to sell T-Bonds. C. Increased reserve requirements. D. Decreased reserve requirements. E. Quantitative easing. F. None of the above. ____9. Which of the following is associated with a central bank being on the gold standard? [Ch. 9&10] A. The main asset of the central bank would be gold. B. The main liability of the central bank would be gold. C. The government would be unable to borrow money. D. Interest rates could be better controlled by the central bank than under the current system. E. The inflation rate would be zero. F. None of the above. ____10. The current chair of the US Fed’s Board of Governors is: [Ch. 9&amp...
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