Exam 3: Fundamentals of Economics and Types of Markets

Rhonda has a ________ account, which gives her an interest rate competitive with those of brokerage firm money market funds but requires a higher minimum balance and limits check writing to three per month.

A ________ is an account that pays interest and allows you to write an unlimited number of checks, but you have to maintain a minimum monthly balance.

When Michael started his construction company, he needed to purchase some very expensive excavating equipment, but he didn't have the cash on hand to do so. He borrowed from the bank to cover this ________ expenditure.

Algorithm Computers needs to borrow money to pay for an addition to its training facility. The owners approach their bank, but their application for a long-term loan is denied. They decide to issue corporate bonds to the public instead. The company has a strong reputation but is unable to provide collateral for the bonds it sells. The bonds in this example are most likely ________ and would be described as a form of ________.

Determining long-term investments and planning the expenditure of funds are part of

I'SCream makes a variety of healthy alternatives to dairy-based ice cream. One of its most popular styles of ice cream utilizes avocado milk for the main ingredient. Avocados take a long time to ship, so I'SCream will often borrow money from its bank to facilitate larger orders of avocados. Which of the reasons firms borrow money does thisbest demonstrate?

Tatjana received $100 for her birthday last week. She spent $50 on a new video game and put the other $50 aside for a vacation she has planned next month. The money she savedbest represents which function of money?

Joe's Barber Shop gives free haircuts to Manny, who brings Joe a free pastrami sandwich on Fridays. This demonstrates the concept of

In a ________, a bank specifies how much it is willing to lend the borrower during a specified period of time, although the bank does not guarantee the loan.

Dex is the CFO for Trask Enterprises. He is meeting with the CEO and other members of the leadership team to create a formal plan for helping Trask to meet its financial objectives. Dex ismost likely assisting with a

A ________ forecast is a prediction about how money will come into and go out of a firm in the near future, usually the next 1-3 months, and are based on anticipated sales and expenses.

Antoinette wants to take out a mortgage. Her friend recommended she look into her bank, so Antoinette decided to do some research. Everything appeared to be the same except her friend's bank appeared to be owned by depositors rather than shareholders. Antoinette's friendmost likely recommended a

Lahn placed $100 in a certificate of deposit. After three years he received 10 percent interest on the $100. This is an example of a ________ deposit, which can be further classified as a form of ________.

Which activity represents a way that a commercial bank might make money?

Shan is responsible for managing the accounts payable team for her Signal Signage Company. She ensures the team does not make payments immediately after receiving an invoice, while also ensuring that payment due dates are not missed. Why would Shan manage the accounts payable process in this manner?

Tra's Tree Trimming Company is always able to pay its bills on time or before they are due. Thisbest demonstrates the concept of

The end goal of financial management is

The market is currently seeing lower interest rates and increased economic growth. Which Fed tool for controlling the money supply wasmost likely used to cause this to occur?

Jasper started a new position last year. Since starting, he has been responsible for obtaining sufficient funds to complete several important projects for his employer. Jaspermost likely works in the field of ________ management.

A ________ is credit extended by a bank for a specific purpose, such as for constructing a new store or stocking up on new inventory for the season.