BBA-QUIZ-A-D2-4.docVIP

FIN 301 QUIZ 1 Class: D ____ Name:___________________ Student I.D.:________________________ A Multiple Choice (60%) ( ) 1. The gross domestic product is A) the value of all wealth in an economy. B) the value of all goods and services sold to other nations in a year. C) the market value of all final goods and services produced in an economy in a year. D) the market value of all intermediate goods and services produced in an economy in a year. ( ) 2. Which of the following items are not counted in U.S. GDP ? A) your purchase of a new Ford Mustang B) your purchase of new tires for your old car C) GMs purchase of tires for new cars D) a foreign consumers purchase of a new Ford Mustang ( ) 3. The measure of the aggregate price level that is most frequently reported in the media is A) GDP deflator B) producer price index C) consumer price index D) personal consumption expenditure deflator ( ) 4. Financial markets have the basic function of A) getting people with funds to lend together with people who want to borrow funds. B) assuring that the swings in the business cycle are less pronounced. C) assuring that governments need never resort to printing money. D) providing a risk-free repository of spending power. ( ) 5. The primary liabilities of a commercial bank are A) bonds. B) mortgages. C) deposits. D) commercial paper. ( ) 6. Increasing the amount of information available to investors helps to reduce the problems of the financial markets. A) adverse selection; moral hazard B) adverse selection; risk sharing C) moral hazard; transactions costs D) adverse selection; economies of scale ( ) 7. The purpose of the disclosure requirements of the Securities and Exchange Commission is A) increase the information available to investors. B) prevent bank panics. C) improve monetary control. D) protect investors against financial losses. ( ) 8. The regulatory agency that sets reserve requirements for all banks is A) the Federal Reserve System. B) th