Strayer FIN100 quiz 3

Question 1 .2 out of 2 points

Correct If the Fed wishes to stimulate the economy, it may:

Answer

. Question 2 .2 out of 2 points

Correct Government financing of large budgetary deficits:

Answer

. Question 3 .2 out of 2 points

Correct The U.S. banking system has the ability to alter the size of the money supply because of the use of:

Answer

. Question 4 .2 out of 2 points

Correct Price inflation:

Answer

. Question 5 .2 out of 2 points

Correct During the 2007 - 2009 financial crisis, many major financial institutions and business corporations were on the verge of collapse or failure; however, some of the very largest corporations and financial institutions were deemed as being ________ because their failure would cause cascading negative repercussions throughout the U.S. and many foreign economies.

Answer

. Question 6 .2 out of 2 points

Correct Who made the following famous statement: "The government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it."

Answer

. Question 7 .2 out of 2 points

Correct The multiplying capacity of primary deposits is reduced if:

Answer

. Question 8 .2 out of 2 points

Correct Deposits that add new reserves to the bank where they are deposited are called:

Answer

. Question 9 .2 out of 2 points

Correct A primary focus of the Economic Stabilization Act of 2008, which became know as the ___________________________, was to allow the U.S. Treasury purchase up to $700 billion of troubled or toxic assets held by financial institutions.

Answer

. Question 10 .2 out of 2 points

Correct The government entity responsible for fiscal policy is:

Answer

. Question 11 .2 out of 2 points

Correct The effect of arbitrage activities in foreign exchange markets is to:

Answer

. Question 12 .2 out of 2 points

Correct A draft that is not accompanied by any special documents and generally used when the exporter has confidence in the importer’s ability to meet the draft when presented is known as:

Answer

Selected Answer: a clean draft

Correct Answer: a clean draft

. Question 13 .2 out of 2 points

Correct A documentary draft is accompanied, among other things, by a (n):

Answer

. Question 14 .2 out of 2 points

Correct A bankers’ acceptance differs from a trade draft in that:

Answer

. Question 15 .2 out of 2 points

Correct The least costly form of claim in foreign exchange is a:

Answer

. Question 16 .2 out of 2 points

Correct The exchange rate is the rate at which a given unit of foreign currency is quoted in terms of:

Answer

. Question 17 .2 out of 2 points

Correct The benefits of specialization of effort among nations depend primarily upon:

. Question 18 .2 out of 2 points

Correct Foreign exporters are usually quite willing to accept U.S. dollars in payment for goods and services because:

. Question 19 .2 out of 2 points

Correct A draft requiring immediate payment is called a (n)

. Question 20 .2 out of 2 points

Correct The Board of Governors of the Federal Reserve System considers bankers’ acceptances used in international trade to be:

Answer