BA 101

 A large publically traded company will receive a major financial benefit from the sell of its stock ________ .Select one:a. each time a shareholder buys or sells the stock b. when the stock is traded on the New York Stock Exchange c. at the initial public offering

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Although money has no intrinsic value, it is demanded throughout society. Among the reasons that money is demanded are:Select one:a. It is not easy to counterfeit.b. It is divisible c. it stores value.

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Bank Of The North (B of N) gave out large loans to many of their customers. After reviewing the bank’s records, B of N sees that the bank is now below the Federal Reserve’s minimum reserve requirement. A member bank, Helper Bank, has excess reserves. B Of N borrows enough money from Helper Bank to reach their reserve requirement. The rate of interest that B of N will pay to Helper Bank for the loan is the ________ rate.Select one:a. intrabank b. institutional c. federal funds

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Bonds are:Select one:a. A partial ownership in a companyb. a way to raise capital that does not need to be repaidc. a formal contract to repay borrowed money with interest at fixed intervals.

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Historically many methods and markets were used to raise capital, but the primary methods that have evolved in modern times are the:Select one:a. land markets and housing markets b. Over the counter markets c. bond markets and stock markets

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If the federal government wanted to find out how much M1 money is in circulation in the US, it would look at which of the following?Select one:a. Savings accounts b. Money market mutual funds c. Demand deposits and other checking accounts

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If you were given the task of totalling all the M2 money in circulation in the US, which of the following would you include in your calculations?Select one:a. 1.Demand deposits and other checking accounts b. Currency c. 2.Savings accounts

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One of the ways the Federal Reserve System seeks to stabilize prices is by:Select one:a. controlling the price of goods b. engaging in trade treaties c. regulation of interest rates

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Stocks or equity securities are:Select one:a. Debt to the company b. Managed by your local commercial bank c. financial instruments that may include share of a company’s future profits.

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The Federal Reserve lowers the reserve requirement from 7 percent to 6 percent. Consequently banks must set aside less money to meet the reserve requirement. They have more money to lend to their customers and are able to lower the rate of interest they charge. These conditions make it less expensive for people and businesses to borrow money. Because they can borrow more, they can spend more. If people are spending more, prices go up. With this action, the Fed has lessened the likelihood of ________.Select one:a. inflation b. free market c. recession

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