FIN 100 WEEK 7 QUIZS

Question 1
_________________________ was an international monetary system in which  the U.S. dollar was valued in gold and other exchange rates were pegged  to the dollar.
 

The gold standard
 

The flexible exchange rate system
 

The Bretton Woods System
 

The Taft-Hartley Act
Question 2
An importer will generally try to avoid making payment for a purchase before the goods are actually shipped by
 

purchasing a letter of credit.
 

having payment sent to a bank in the exporter's country to be held until proper shipment is made.
 

post-dating a check.
 

insisting on payment only upon delivery.
Question 3
An unconditional order for the payment of money from one person to another is called a(n)
 

bill of exchange.
 

sight draft.
 

time draft.
 

documentary draft.
 

Question 4
A statement by a bank guaranteeing acceptance and payment of a draft up to a stated amount is called a(n)
 

bill of exchange.
 

commercial letter of credit.
 

time draft.
 

documentary draft.
Question 5
An instrument through which a bank retains title to goods until they are paid for is called a(n)
 

bill of exchange.
 

commercial letter of credit.
 

trust receipt.
 

documentary draft.
Question 6
The personal savings rate is calculated as:
 

personal savings divided by personal outlays
 

personal savings divided by disposable personal income
 

disposable personal income divided by personal outlays
 

personal income divided by personal outlays
Question 7
Capital market securities include all of the following EXCEPT:
 

Corporate bond
 

Treasury bond
 

Certificate of deposit
 

Common Stock
Question 8
The life stages of an individual saver include which of the following:
 

the formative/education developing stage
 

the career reduction stage
 

the wealth depletion stage
 

the cost of living stage
Question 9
If personal consumption expenditures are $1 billion, government  purchases are $2 billion, gross private domestic investments are $4  billion and net exports are $5 billion, then GDP is:
 

$12 billion
 

$8 billion
 

$7 billion
 

$2 billion
Question 10
If individuals believe their income will decrease in the near future, they may _____________ their spending.