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- Question
OMO refers to
- Correct Answer
- Open Market Operations (OMO) refer to the buying and selling of government securities in the open market in order to expand or contract the amount of money in the banking system
- 1. Automatic stabilizers refer to
Options- A. government spending and taxes that automatically increase or decrease along with the business cycle.
- B. changes in the money supply and interest rates that are intended to achieve macroeconomic policy objectives.
- C. changes in federal taxes and purchases that are intended to achieve macroeconomic policy objectives.
- D. the money supply and interest rates that automatically increase or decrease along with the business cycle. Discuss
- 2. Which of the following is a type of savings vehicle?
Options- A. Checking Account
- B. Certificate of Deposit
- C. Money Market Account
- D. Both B & C Discuss
- 3. In recording an accounting transaction in a double-entry system
Options- A. there must always be entries made on both sides of the accounting equation.
- B. the amount of the debits must equal the amount of the credits.
- C. there must only be two accounts affected by any transaction.
- D. the number of debit accounts must equal the number of credit accounts. Discuss
- 4. Which of the following statements about minimum payments is incorrect?
Options- A. If you send in the minimum payment, you will be charged a late fee
- B. Paying the minimum means you are only paying off a portion of your total debt
- C. You will still pay interest on your balance if you submit the minimum payment
- D. Minimum payments are typically only 2-4% of your total debt Discuss
- 5. A capital expenditure results in a debit to
Options- A. an asset account
- B. a liability account
- C. an expense account
- D. a capital account Discuss
- 6. The balance of an account is determined by
Options- A. Sum of credits and debits
- B. Difference of credits and debits
- C. Product of credits and debits
- D. None of the above Discuss
- 7. Which best describes the difference between stocks and bonds?
Options- A. stocks allow investors to own a portion of the company; bonds are loans to the company
- B. stocks are more reliable investment;bonds tend to be more volatile
- C. stocks allow investors to share in profits;bonds make investors responsible for company debts
- D. stocks pay interest to investors throughout the year; bonds only pay interest at fixed times during the year Discuss
- 8. SIP full form is
Options- A. Sudden Investing Plan
- B. Systematic Investment Plan
- C. Savings Investmets Plan
- D. None of the above Discuss
- 9. The interest-rate effect suggests that
Options- A. an increase in the price level will increase the demand for money, reduce interest rates, and decrease consumption and investment spending
- B. an increase in the price level will increase the demand for money, increase interest rates, and decrease consumption and investment spending
- C. a decrease in the supply of money will increase interest rates and reduce interest-sensitive consumption and investment spending
- D. an increase in the price level will decrease the demand for money, reduce interest rates, and increase consumption and investment spending Discuss
- 10. A decline in the real interest rate will
Options- A. shift the investment schedule downward
- B. shift the investment schedule leftward
- C. increase the amount of investment spending
- D. None of the above Discuss
Accounting and Finance problems
Search Results
Correct Answer: government spending and taxes that automatically increase or decrease along with the business cycle.
Correct Answer: Both B & C
Correct Answer: the amount of the debits must equal the amount of the credits.
Correct Answer: If you send in the minimum payment, you will be charged a late fee
Correct Answer: an asset account
Correct Answer: Difference of credits and debits
Explanation:
The balance of an account is determined by the difference of credits amount and debits amount in the sheet.
Correct Answer: stocks are more reliable investment;bonds tend to be more volatile
Correct Answer: Systematic Investment Plan
Explanation:
SIP is Systematic Investment Plan.
Correct Answer: an increase in the price level will increase the demand for money, increase interest rates, and decrease consumption and investment spending
Explanation:
The interest-rate effect suggests that an increase in the price level will increase the demand for money, increase interest rates, and decrease consumption and investment spending.
Correct Answer: increase the amount of investment spending
Explanation:
The real interest rate is the percentage increase in purchasing power that the lender receives on a loan. A decline in the real interest rate will increase the amount of investment spending.
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