Cards in this guide (26)
What terms describes a company's first sale of stock to the public
A business is unlikely to be able to secure a bank loan to fund its operations without what
A stable operating history
Which kind of stock market analysis focuses on overall trends in the market
Technical analysis is the kind of stock market analysis that
focuses on overall trends in the market.
Why do governments provide public goods
The free market is incapable of providing these essential goods.
Private companies cannot profit by providing them.
Which of the following statements best describes how investors behave when engaged in socially responsible investing
They invest in companies with a business model and social
mission that they support
Which of the following has no value except as a medium of exchange
What best explains how bondholders and banks serve a similar function
They are both holders of someone else's debt.
A system involves the direct exchange of goods and services without the use of money as a medium of exchange
A _barter_ system involves the direct exchange of goods and
services without the use of money as a medium of exchange.
Currency traders buy on margin so they can do which of the following
Make large currency trades using small amounts of money.
What accurately describes how raising the required reserve ratio reduces the money supply
When the required reserve ratio is raised, banks must loan out a
smaller portion of their reserves, resulting in fewer loans.
What best describes the meaning of going public
When a company begins selling shares of its stock to the
public
Which of the following describes the most likely effect of the sale of a new batch of Treasury bonds
A decrease in the money supply
Which of the following is one disadvantage for a company that goes public
The pressure to make profits is increased.
What is rural-commodity market
Farmer's market where fresh products are sold hearby.
Disadvantage of debt financing
banks are usually unwilling to fund a business in its early
stages of development
What best states the difference between seed capital and startup capital
Seed capital is for research and planning while startup capital
is for operating expenses.
What best describes why banks aren't allowed to loan out all of their deposits at once
. If banks loaned out all of their deposits, it would be
impossible to meet customers' demands for withdrawals
Which of the following most accurately explains why money differs from commodity money
Fiat money only has value as a medium of exchange. Apex
Which best explains why the money supply is decreased when the government issues bonds
The purchase of bonds reduces the bond buyers' bank
accounts.
Which of the following describes a condition that is favorable for conducting an IPO
Which of the following accurately explains how profit is calculated (Apex)
cost are subtracted from revenues
What accurately explains what an exchange rate of 120 between the Canadian dollar in Japanese yen means
It only takes one Canadian dollar to buy 20 Japanese yen
Ask us of the following most accurately explains why fiat money differs from commodity money
Fiat money has value bc the gov. declares that it has value.
What of the following best explains why treasury bonds have an effect on the size of the money supply
The Federal Reserve Bank can buy and sell these bonds to raise or lower bank deposits. APEX
When Compared to basic savings accounts CDs are liquid and have interest rates
Match each organization with its correct relationship to the government
A. Social security _ government agency
B. U.S. Postal Service _ government corporation
C. Boeing _ government contractor
