Question 1

Which of the following could affect personal income levels?

Accepted Answer

A)  Employment Levels 
B)  Corporate profits 
C)  Inflation 
D)  Liquidity 
A)  Employment Levels 
B)  Corporate profits 
C)  Inflation 
D)  Liquidity A

Question 2

Which of the following factors does not affect savings?

Accepted Answer

A)  Levels of Income 
B)  Inflation rate 
C)  Cyclical influences 
D)  Life stage of the individual or corporation 
A)  Levels of Income 
B)  Inflation rate 
C)  Cyclical influences 
D)  Life stage of the individual or corporation B

Question 3

The federal debt of the United States is owned to a large extent by China.

Accepted Answer

A) True 
 B)False  False

Question 4

Gross private domestic investment (GPDI) measures fixed investment in residential and nonresidential structures, producers' durable equipment, and changes in business inventories.

Accepted Answer

A) True 
 B)False

Question 5

GDP includes personal consumption expenditures, government purchases of goods and services, gross private domestic investment, and net exports of goods and services.

Accepted Answer

A) True 
 B)False

Question 6

Voluntary savings are financial assets set aside for use in the future.

Accepted Answer

A) True 
 B)False

Question 7

A savings deficit occurs when investment in real assets exceeds current income.

Accepted Answer

A) True 
 B)False

Question 8

Benefit payments for individuals amount to over half of total expenditures of the federal government.

Accepted Answer

A) True 
 B)False

Question 9

Gross Private Domestic Investment (GPDI) measures fixed investment in:

Accepted Answer

A)  residential and non-residential structures 
B)  individual expenditures for nondurable goods 
C)  individual expenditures for services 
D)  government securities 
A)  residential and non-residential structures 
B)  individual expenditures for nondurable goods 
C)  individual expenditures for services 
D)  government securities

Question 10

Government spending provided by passage of appropriations bills that set aside funds for specific federal agencies and programs.

Accepted Answer

A)  Mandatory spending 
B)  Discretionary spending 
C)  Required spending 
D)  Appropriations spending 
A)  Mandatory spending 
B)  Discretionary spending 
C)  Required spending 
D)  Appropriations spending

Question 11

The personal savings rate is calculated as personal savings divided by pre-tax income.

Accepted Answer

A) True 
 B)False

Question 12

Contractual savings are not determined by current decisions.

Accepted Answer

A) True 
 B)False

Question 13

In recent years, the United States has been running large trade deficits with both Japan and China.

Accepted Answer

A) True 
 B)False

Question 14

The federal debt is the same thing as the budget deficit.

Accepted Answer

A) True 
 B)False

Question 15

In general, the total savings in the United States has decreased during the past 12 years.

Accepted Answer

A) True 
 B)False

Question 16

Voluntary savings are financial assets set aside for use in more than one year in the future.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following statements factors did not contribute to the 2007-2009 financial crisis?

Accepted Answer

A)  The cultural shift that allowed the public to "spend now and pay later"-rather than their parents' or grandparents' philosophy of "save now, spend later" led to increases in consumer debt levels. 
B)  U.S. government officials engaged in efforts to expand home ownership by encouraging lenders to make mortgage loans available to a broader spectrum of individuals. 
C)  Businesses raising prices on goods and services. 
D)  The Federal Reserve adopted an expansionary monetary policy characterized by very low interest rates. 
A)  The cultural shift that allowed the public to "spend now and pay later"-rather than their parents' or grandparents' philosophy of "save now, spend later" led to increases in consumer debt levels. 
B)  U.S. government officials engaged in efforts to expand home ownership by encouraging lenders to make mortgage loans available to a broader spectrum of individuals. 
C)  Businesses raising prices on goods and services. 
D)  The Federal Reserve adopted an expansionary monetary policy characterized by very low interest rates.

Question 18

A subprime mortgage is a mortgage made to a borrower with an excellent credit score.

Accepted Answer

A) True 
 B)False

Question 19

Greater potential savings would result from a (n):

Accepted Answer

A)  age distribution shift to more teenagers 
B)  shift to more elderly people in the total population 
C)  shift to more young married couples 
D)  shift to more middle-aged families 
A)  age distribution shift to more teenagers 
B)  shift to more elderly people in the total population 
C)  shift to more young married couples 
D)  shift to more middle-aged families

Question 20

The life stages of an individual saver include which of the following:

Accepted Answer

A)  the formative/education developing stage 
B)  the career reduction stage 
C)  the wealth depletion stage 
D)  the cost of living stage 
A)  the formative/education developing stage 
B)  the career reduction stage 
C)  the wealth depletion stage 
D)  the cost of living stage

Which of the following could affect personal income levels?

Which of the following factors does not affect savings?

The federal debt of the United States is owned to a large extent by China.

Gross private domestic investment (GPDI) measures fixed investment in residential and nonresidential structures, producers' durable equipment, and changes in business inventories.

GDP includes personal consumption expenditures, government purchases of goods and services, gross private domestic investment, and net exports of goods and services.

Voluntary savings are financial assets set aside for use in the future.

A savings deficit occurs when investment in real assets exceeds current income.

Benefit payments for individuals amount to over half of total expenditures of the federal government.

Gross Private Domestic Investment (GPDI) measures fixed investment in:

Government spending provided by passage of appropriations bills that set aside funds for specific federal agencies and programs.

The personal savings rate is calculated as personal savings divided by pre-tax income.

Contractual savings are not determined by current decisions.

In recent years, the United States has been running large trade deficits with both Japan and China.

The federal debt is the same thing as the budget deficit.

In general, the total savings in the United States has decreased during the past 12 years.

Voluntary savings are financial assets set aside for use in more than one year in the future.

Which of the following statements factors did not contribute to the 2007-2009 financial crisis?

A subprime mortgage is a mortgage made to a borrower with an excellent credit score.

Greater potential savings would result from a (n):

The life stages of an individual saver include which of the following:

The Financial Environment

Money and the Monetary System

Banks and Other Financial Institutions

Federal Reserve System

Policy Makers and the Money Supply

International Finance and Trade

Interest Rates

Time Value of Money

Bonds and Stocks: Characteristics and Valuations

Securities and Markets

Financial Return and Risk Concepts

Business Organization and Financial Data

Financial Analysis and Long-Term Financial Planning

Managing Working Capital

Short-Term Business Financing

Capital Budgeting Analysis

Capital Structure and the Cost of Capital

Filters

Exam 7: Savings and Investment Process

Which of the following could affect personal income levels?

Which of the following factors does not affect savings?

The federal debt of the United States is owned to a large extent by China.

Gross private domestic investment (GPDI) measures fixed investment in residential and nonresidential structures, producers' durable equipment, and changes in business inventories.

GDP includes personal consumption expenditures, government purchases of goods and services, gross private domestic investment, and net exports of goods and services.

Voluntary savings are financial assets set aside for use in the future.

A savings deficit occurs when investment in real assets exceeds current income.

Benefit payments for individuals amount to over half of total expenditures of the federal government.

Gross Private Domestic Investment (GPDI) measures fixed investment in:

Government spending provided by passage of appropriations bills that set aside funds for specific federal agencies and programs.

The personal savings rate is calculated as personal savings divided by pre-tax income.

Contractual savings are not determined by current decisions.

In recent years, the United States has been running large trade deficits with both Japan and China.

The federal debt is the same thing as the budget deficit.

In general, the total savings in the United States has decreased during the past 12 years.

Voluntary savings are financial assets set aside for use in more than one year in the future.

Which of the following statements factors did not contribute to the 2007-2009 financial crisis?

A subprime mortgage is a mortgage made to a borrower with an excellent credit score.

Greater potential savings would result from a (n):

The life stages of an individual saver include which of the following:

The Financial Environment

Money and the Monetary System

Banks and Other Financial Institutions

Federal Reserve System

Policy Makers and the Money Supply

International Finance and Trade

Interest Rates

Time Value of Money

Bonds and Stocks: Characteristics and Valuations

Securities and Markets

Financial Return and Risk Concepts

Business Organization and Financial Data

Financial Analysis and Long-Term Financial Planning

Managing Working Capital

Short-Term Business Financing

Capital Budgeting Analysis

Capital Structure and the Cost of Capital

Filters