Site MapHelpFeedbackMultiple Choice Quiz
Multiple Choice Quiz
(See related pages)

1
The most widely used monetary tool is
A)open market operations.
B)altering the reserve requirements.
C)altering the discount rate.
D)altering marginal tax rates.
E)none of the above
2
Monetary policy is determined by
A)presidential mandates.
B)government budget decisions.
C)congressional actions.
D)the board of Governors of the Federal Reserve System.
E)none of the above
3
Fiscal policy is difficult to implement quickly because
A)it requires political negotiations.
B)increases in tax rates affect consumer spending gradually.
C)much of government spending is non-discretionary and cannot be changed.
D)A and B
E)A and C
4
Supply-side economists wishing to stimulate the economy are most likely to recommend
A)a decrease in the money supply.
B)a decrease in the tax rate.
C)an increase in the real interest rate.
D)a decrease in production output.
E)none of the above
5
The process of estimating the dividends and earnings that can be expected from the firm based on determinants of value is called
A)business cycle forecasting.
B)macroeconomic forecasting.
C)fundamental analysis.
D)technical analysis.
E)none of the above
6
During which stage of the industry life cycle would a firm experience stable growth in sales?
A)Consolidation
B)Relative decline
C)Maturity
D)Start-up
E)Stabilization
7
If interest rates decrease, business investment expenditures are likely to ______ and consumer durable expenditures are likely to _________.
A)increase; increase
B)increase; decrease
C)decrease; increase
D)decrease; decrease
E)be unaffected; be unaffected
8
If the economy is growing, firms with low operating leverage will experience __________.
A)higher increases in profits than firms with high operating leverage.
B)similar increases in profits as firms with high operating leverage.
C)smaller increases in profits than firms with high operating leverage.
D)no change in profits.
E)none of the above
9
According to Michael Porter, there are five determinants of competition. An example of _____ is when the availability of similar products in related industries limits the prices that can be charged to customers.
A)Threat of entry
B)Rivalry between existing competitors
C)Pressure from substitute products
D)Bargaining power of buyers
E)Bargaining power of suppliers
10
A top down analysis of a firm starts with ____________.
A)the relative value of the firm
B)the absolute value of the firm
C)the domestic economy
D)the global economy
E)the industry outlook





To learn more about the book this website supports, please visit its Information Center.
(c)2014 McGraw-Hill Higher Education
Any use is subject to the Terms of Use and Privacy Notice.
McGraw-Hill Higher Education is one of the many fine businesses of The McGraw-Hill Companies.


InvestmentsOnline Learning Center

Home > Chapter 17 > Multiple Choice Quiz