81. in documentary collection, the documents will not be delivered to the buyer until ______.
a. the goods have arrived
b. the buyer has cleared the goods
c. the bill is paid or accepted
d. the seller says so
82. in documentary credit operations, all parties concerned deal in ______.
a. credits
b. documents
c. contracts
d. goods
83. a check involves______.
a. the writer, the signer, the cashier, and the bank
b. the drawer, the payee, and the bank
c. the drawer and the payee
d. the signer, the payee, and the company
84. assume a bank has $200 million of assets with a duration of 2, and $ 100 million of liabilities with a duration of 3. what is the duration gap for the bank? ______.
a.2
b.－1
c.0.5
d.－4
85. when a central bank allows the purchase or sale of domestic currency to have an effect on the monetary base and hence on the money supply, the intervention is said to be a/an _____ foreign exchange intervention.
a. limited
b. unlimited
c. sterilized
d. unsterilized
86. the shipper wants assurance that his goods will reach their destination. the bill of lading gives him this assurance. it thus serves as a ______.
a. contract for delivery
b. receipt for goods
c. title document
d. negotiable instrument
87. a sound policy to combat a temporary liquidity shortage in the banking system would be .
a. an increase in the discount rate
b. an increase in reserve requirements
c. a reduction in reserve requirements
d. the purchase of government securities under repurchase agreement
88. the narrowest definition of money is referred to as ______.
a. m o
b. m 1
c. m 2
d. m 3
89. which of the following is the term used to describe the offsetting of the effects of intervention in the foreign exchange market on the domestic money supply? .
a. daily intervention
b. sterilization c. discretionary monetary policy
d. discretionary fiscal policy
90. under a fixed exchange rate system and freely flowing capital, .
a. fiscal policy is ineffective
b. monetary policy is very effective
c. the supply of money is very important
d. monetary policy is ineffective
91. cash flows are grouped in the statement of cash flows into the following major categories: .
a. cash receipts, cash disbursements, and noncash activities
b. direct cash flows and indirect cash flows
c. operating activities, investing activities, and collecting activities
d. operating activities, investing activities, and financing activities
92. a company that is losing money will have a p/e ratio of what? ______.
a. negative p/e
b. very small p/e
c. it does not have a p/e
d. none of the above
93. suppose the average level of all prices has doubled over the last ten years. we can come to a conclusion that ______. a. the price of money has dropped by 50 percent
b. the size of the money supply has doubled
c. the value of money has been reduced by one-half
d. the velocity of money has increased by 50 percent
94. a company with a p/e ratio higher than the market or its industry means that ______.
a. earnings are expected to grow at a slower rate than the market
b. earnings are expected to grow at a faster rate than the market
c. it will be a low risk investment
d. none of the above
95. the following rules of debit and credit in accounting are all true except that ______.
a. increases in assets are recorded on the debit side of the account
b. increases in retained surplus dividends are recorded on the debit side of the account
c. decreases in liabilities are recorded by debits d. decreases in expenses are recorded by credits
96. the money supply should be large enough to enable the public to buy, at current prices, all______ over a given period of time.
a. the goods and services the economy has produced
b. the goods, services, and financial assets the economy has produced
c. the goods and services the economy is able to produce
d. the goods, services, and financial assets the economy is able to produce
97. when the u.s. real interest rate is low, owning u.s. assets is ______ and so u.s. net foreign investment is ______.
a. more attractive... high
b. more attractive... low
c. less attractive... high
d. less attractive... low
98. in the open-economy macroeconomic model, the quantity of dollars demanded in foreign-currency exchange market ______.
a. depends on the real exchange rate. the quantity of dollars supplied in foreign-exchange markets depends on the real interest rate
b. depends on the real interest rate. the quantity of dollars supplied in foreign-exchange markets depends on the real exchange rate
c. and the quantity of dollars supplied in the foreign-currency exchange market depend on the real exchange rate
d. and the quantity of dollars supplied in the foreign-currency exchange
99. assume a bank with the duration gap of －1. a ______ in interest rates will ______ bank's net worth.
a. fall... reduce
b. fall... increase
c. rise. .-.reduce
d. change.. .have no effect on
100. adverse selection is a problem associated with equity and debt contracts arising from .
a. the lenders' ability to legally require sufficient collateral to cover a 100% loss if the borrower defaults
b. the lenders' relative lack of information about the borrowers' potential returns and risks of his investment activities
c. the borrowers' lack of incentive to seek a loan for highly risky investments
d. none of the above