$2500 om a e out a mortgage from your local bank. shares of common stock in the secondary market. ues measured using current prices are called ninal values. ated regate can be described as the case of the Company Anotalia uses the funds to pay for the Royal Caribbean cruises for all of its employees and their famil rerse selection ral hazard = sharing dit risk emoney market instruments that were created to assist in carrying out inte otiable CDs. ker's acceptances. urchase agreements. eral funds. derstanding the business cycle is important for business managers because
$2500 om a e out a mortgage from your local bank. shares of common stock in the secondary market. ues measured using current prices are called ninal values. ated regate can be described as the case of the Company Anotalia uses the funds to pay for the Royal Caribbean cruises for all of its employees and their famil rerse selection ral hazard = sharing dit risk emoney market instruments that were created to assist in carrying out inte otiable CDs. ker's acceptances. urchase agreements. eral funds. derstanding the business cycle is important for business managers because
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter17: Financial Markets
Section: Chapter Questions
Problem 38P: Suppose Ford Motor Company issues a five year bond with a face value of 5,000 that pays an annual...
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![1. A direct finance can be described as?
A. buy shares in a mutual fund.
B. borrow $2500 from a friend.
C. take out a mortgage from your local bank.
D. buy shares of common stock in the secondary market.
2. Values measured using current prices are called
values.
A. nominal
B. real
C. inflated
D. aggregate
3.
can be described as the case of the Company Anotalia uses the funds raised from selling
bonds to pay for the Royal Caribbean cruises for all of its employees and their families.
A. Adverse selection
B. Moral hazard
C. Risk sharing
D. Credit risk
4. The money market instruments that were created to assist in carrying out international trade are
called
A. negotiable CDs.
B. banker's acceptances.
C. repurchase agreements.
D. federal funds.
5. Understanding the business cycle is important for business managers because
A. they affect the demand for their products
B. they affect their profits
C. to frame appropriate policies and forward planning
D. all the above](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F521bc6fe-926a-4583-a622-454680237bf4%2Fbce1a9ae-4fff-482f-ba43-da9d604558c7%2Fmw0wv7b_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1. A direct finance can be described as?
A. buy shares in a mutual fund.
B. borrow $2500 from a friend.
C. take out a mortgage from your local bank.
D. buy shares of common stock in the secondary market.
2. Values measured using current prices are called
values.
A. nominal
B. real
C. inflated
D. aggregate
3.
can be described as the case of the Company Anotalia uses the funds raised from selling
bonds to pay for the Royal Caribbean cruises for all of its employees and their families.
A. Adverse selection
B. Moral hazard
C. Risk sharing
D. Credit risk
4. The money market instruments that were created to assist in carrying out international trade are
called
A. negotiable CDs.
B. banker's acceptances.
C. repurchase agreements.
D. federal funds.
5. Understanding the business cycle is important for business managers because
A. they affect the demand for their products
B. they affect their profits
C. to frame appropriate policies and forward planning
D. all the above
![6. During economic expansion, the unemployment rate and output
A. rises ; falls
B. rises ; rises
C. falls ; rises
D. falls ; falls
7. The
A. world war I, 1914 - 33
of
caused enormous misery and human sufferings
B. financial crisis, 1919 - 23
C. great depression, 1929 - 33
D. world war II, 1939 - 63
8. Sapsiree Taerattanachai buying a badminton ticket game with his online banking is an example of the
function of money.
A. medium of exchange
B. unit of account
C. store of value
D. standard of deferred payment
9. A common stock is a claim on a corporation's
A. debt.
B. liabilities.
C. bonds.
D. profits.
10. Currency includes
A. Paper money, coins, checks and savings deposits
B. Paper money, coins, checks and e-money
C. Paper money and check
D. Paper money and coins](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F521bc6fe-926a-4583-a622-454680237bf4%2Fbce1a9ae-4fff-482f-ba43-da9d604558c7%2Fy3gxp1_processed.jpeg&w=3840&q=75)
Transcribed Image Text:6. During economic expansion, the unemployment rate and output
A. rises ; falls
B. rises ; rises
C. falls ; rises
D. falls ; falls
7. The
A. world war I, 1914 - 33
of
caused enormous misery and human sufferings
B. financial crisis, 1919 - 23
C. great depression, 1929 - 33
D. world war II, 1939 - 63
8. Sapsiree Taerattanachai buying a badminton ticket game with his online banking is an example of the
function of money.
A. medium of exchange
B. unit of account
C. store of value
D. standard of deferred payment
9. A common stock is a claim on a corporation's
A. debt.
B. liabilities.
C. bonds.
D. profits.
10. Currency includes
A. Paper money, coins, checks and savings deposits
B. Paper money, coins, checks and e-money
C. Paper money and check
D. Paper money and coins
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