Busn 602 Midterm Exam Answers

BUSN 602 Midterm Exam Answers
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BUSN602 Midterm Exam


Part 1 of 1 – 100.0 Points

Question 1 of 20 5.0 Points
Jill Clinton puts $1,000 in a savings passbook that pays 4% compounded quarterly. How much will she have in her account after five years?


A.$1,200.50
B.$1,220.20
C.$1,174.80
D.$1,217.50



Question 2 of 20 5.0 Points
An increase in inflation should:


A.increase the demand for loanable funds
B.decrease the interest rate on loans
C.increase the interest rate on loans
D.none of the above



Question 3 of 20 5.0 Points
Economists use a ___________________ framework to explain how the prices and quantities of goods and services are determined in a free-market economic system.


A.opportunity
B.marginal cost
C.supply-and-demand
D.anti-monopoly
E.none of the above



Question 4 of 20 5.0 Points
The future value of $100 received today and deposited at 6 percent for four years is


A.$126.
B.$ 79.
C.$124.
D.$116.



Question 5 of 20 5.0 Points
All of the following are important components of a financial system except:


A.government and private policy makers
B.a monetary system
C.the international monetary fund
D.financial institutions and markets



Question 6 of 20 5.0 Points
In general, the effective rate of interest on a discount loan


A.is lower than that on standard loan
B.is higher than that on a standard loan
C.is identical to that on a standard loan
D.none of the above



Question 7 of 20 5.0 Points
Because of the financial crisis that began in 2008, by the end of 2009:


A.unemployment was in excess of 10 percent
B.many homeowners owed more money on their mortgage loans than the their homes were worth
C.home mortgage foreclosure rates and personal and business bankruptcies were increasing
D.over 100 banks in the U.S. had already...