1. The Fed implements “monetary policy” through each of the following EXCEPT?
a. Setting reserve requirements.
b. Setting the discount rate.
c. Setting the terms of international trade.
d. Conducting open-market operations.
2. Under which of the following business organizations do the owners have unlimited liability?
a. Proprietorship.
b. Corporation.
c. Limited Partnership.
d. None of the above.
3. Which of the following is true of Designated Market Makers?
a. They trade on behalf of their clients.
b. They are guaranteed a profit in exchange for their service.
c. They must stand ready to buy or sell a particular security.
d. They create and distribute securities for the public.
4. Which of the following contributes the most savings, thus capital formation and economic growth, to the US economy?
a. The federal government.
b. Businesses.
c. Individuals.
d. State and local economic development agencies.
5. If you invest your portfolio 80% in Snapchat and 20% in Coca-Cola and Snapchat loses all its value (goes to zero), your Portfolio Return will be:
a. The average return of Snapchat and Coca-Cola.
b. The return of Coca-Cola.
c. 20% of the return of Coca-Cola.
d. 80% of the return of Snapchat.
3. Which of the following typically occur during a recession?
a. The Velocity of Money increases because people spend less.
b. Unemployment increases.
c The Federal Reserve increases interest rates.
d. All of the above. Get Finance Help Today
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