Exam 3: Fundamentals of Economics and Types of Markets

Which statement demonstrates the money characteristic of portability?

A technology start-up received money from a venture capital company. What type of financing is this?

All commercial banks are________, meaning they have received government permission to operate, either from the federal government (national banks) or an individual state (state banks).

Luna placed $1,000 in an interest-bearing checking account. She can write as many checks as she needs to each month but must keep her balance above $500. Luna most likely opened a ________ account.

Which statement demonstrates the concept of durability as it relates to money?

Chasen's friends ask him to come out to the lake house this weekend, but he politely passes. He is in the process of analyzing his employer's investments to ensure that their risk is translating to their expected level of return. This examplebest describes the concept of

Money can be used to measure the worth of goods and services. This relates to which function of money?

The most familiar form of trade credit is ________, a written contract prepared by the buyer who agrees to pay the seller a certain amount by a certain time.

The Fed is considering increasing the amount of money that banks are required to keep in their vault. This amount is known as the ________ and an increase would most likely cause ________ to interest rates.

Kiri's job is to pay suppliers and determine how much money is left for investment. Which task of financial managers is Kiri performing?

When a firm uses its accounts receivable as collateral, or security, to obtain a short-term loan, as from a commercial bank, it is called

What is a purpose of the Fed's administrative districts?

Alize has owned her own consulting firm for more than 10 years. She is very resistant to debt but needs to borrow money to fund some upcoming product development efforts she is planning. Describe three options available to her.

Kiley is reviewing her company's projected sales and its planned expenses. This data would bebest suited for which of the following forecasts?

A commercial bank is also sometimes called a full-service bank.

Ellison is responsible for taking care of her elderly parents. She also is a small business owner. As her bills mount for caring for her parents, she is forced to tap into her savings account. She then decides to borrow money from the bank to pay bills related to her business. Which of the reasons a firm borrows money does thisbest demonstrate?

Brewster needs to purchase a new company car for his sales manager within the next year. He wants a clear forecast of the potential money that his company will collect and pay during that period. What would be hisbest approach?

Cong works in the banking industry. He is responsible for ensuring that member banks in his district have enough cash on hand to serve customers during the holiday buying season. Congmost likely works in

The price you pay for the use of money over a certain period of time is called the

Short-term financing by which a firm buys a product, then receives a bill from the supplier, and pays it in 30 to 90 days, is