This is a 100 question hw sheet and I have answered all but i am unsure about a few please help!!!
8. Which of the following statements about when the Fed increases the reserve requirement
is correct?
A. Interest rates go down.
B. Banks have more money to lend.
C. Inflation tends to go up.
D. Banks have less money to lend.
I said A
9. Gross profit (gross margin) is equal to
A. gross sales minus net sales.
B. operating expenses minus taxes.
C. revenue minus cost of goods sold.
D. cost of goods sold minus operating expenses.
I said D
10. The first public offering of a corporation’s stock is called a/an _______, and it’s
handled by the _______ market.
A. IPO; primary C. PSO: secondary
B. IPO; secondary D. PSO; primary
I said A
11. The primary function of the Fed’s Board of Directors is to
A. supervise banks. C. regulate credit.
B. set monetary policy. D. buy government bonds.
I said C
13. An index fund is a mutual fund that
A. guarantees dividends.
B. offers a minimum return.
C. invests in stocks that follow Moody’s or other rating indexes.
D. invests only in certain kinds of stock, such as those related to transportation.
I said D
14. In referring to the money supply, which of the following can be accessed quickly and
easily and includes coins and paper money as well as checks?
A. M-1 C. M-3
B. M-2 D. e-cash
I said A
15. Daddy Warbucks bought Annie some stock for her birthday. The stock provides a fixed
dividend, and, if the dividend isn’t paid when it’s due, the missed dividend will accumulate
to be paid later. Daddy bought Annie _______ stock.
A. common C. convertible
B. preferred D. preemptive right
I said B
16. When a European coffee maker becomes less expensive to buy in the United States,
you could probably say that we’re experiencing a _______ dollar.
A. falling C. rising
B. inflated D. stable
I said B
17. Earnings per share, return on sales, and return on equity are all _______ ratios.
A. activity C. liquidity
B. profitability D. debt138
I said C
18. Regarding bonds, which statement is most accurate?
A. Bond holders are creditors, not owners.
B. Bond holdings are nearly always converted to common stock.
C. Bonds are a primary source for a company’s long-term funding.
D. It’s illegal for a firm to offer bonds with a floating dividend rate.
I said B
19. The first step in taking control of your finances is
A. keeping track of all your expenses.
B. preparing a budget.
C. paying off your debts.
D. taking an inventory of your assets.
I said D
20. The first step in the accounting cycle is
A. putting information into journals.
B. preparing a trial balance.
C. analyzing and categorizing documents.
D. posting transactions to ledgers.
I said C
22. A specialized accounting book in which information is posted into specific categories so
managers can find information about one account in the same place is called a
A. ledger. C. trial balance sheet.
B. journal. D. double-entry book.
I said D
23. When planning for your future, an investment in a college education will, above all,
A. provide you with new ideas.
B. give you a chance to learn about different ways of life.
C. improve your earning potential.
D. guarantee a certain desired job.
I said C
24. The type of accounting concerned with providing information and analyses to managers
within the organization is referred to as
A. financial accounting. C. auditing.
B. managerial accounting. D. tax accounting.
I said A
25. With respect to the Federal Reserve, the discount rate is the
A. interest rate charged for loans to member banks.
B. amount of money member banks must keep on hand at the Fed.
C. rate the Fed charges for selling bonds.
D. interest rate banks charge other banks
I said B
The answer to question 21 is B. NASDAQ
Numbers 8,9,13,,16,17,18,22,24,25 are wrong
Number 8 is D
To determine the correct answers, let's break down each question and analyze the options:
8. Which of the following statements about when the Fed increases the reserve requirement is correct?
The correct answer is D. Banks have less money to lend. When the Federal Reserve increases the reserve requirements, it means that banks are required to keep a larger portion of their deposits as reserves. This reduces the amount of money that banks have available to lend out to borrowers.
9. Gross profit (gross margin) is equal to
The correct answer is C. revenue minus cost of goods sold. Gross profit is calculated by subtracting the cost of goods sold from total revenue.
10. The first public offering of a corporation’s stock is called a/an _______, and it’s handled by the _______ market.
The correct answer is B. IPO; secondary. The first public offering of a corporation's stock is called an Initial Public Offering (IPO), and it is handled by the primary market.
11. The primary function of the Fed’s Board of Directors is to
The correct answer is B. set monetary policy. The Federal Reserve's Board of Directors is responsible for setting monetary policy, which includes decisions related to interest rates and the money supply.
13. An index fund is a mutual fund that
The correct answer is C. invests in stocks that follow Moody’s or other rating indexes. An index fund is a type of mutual fund that is designed to track the performance of a specific market index, such as the S&P 500. It does not guarantee dividends or offer a minimum return.
14. In referring to the money supply, which of the following can be accessed quickly and easily and includes coins and paper money as well as checks?
The correct answer is A. M-1. M-1 is a measure of the money supply that includes physical currency (coins and paper money) as well as checking account deposits that can be accessed quickly and easily.
15. Daddy Warbucks bought Annie some stock for her birthday. The stock provides a fixed dividend, and, if the dividend isn’t paid when it’s due, the missed dividend will accumulate to be paid later. Daddy bought Annie _______ stock.
The correct answer is B. preferred. Preferred stock is a type of stock that provides a fixed dividend and has priority over common stock in terms of receiving dividend payments.
16. When a European coffee maker becomes less expensive to buy in the United States, you could probably say that we’re experiencing a _______ dollar.
The correct answer is A. falling. When a European coffee maker becomes less expensive to buy in the United States, it indicates that the value of the dollar relative to the euro has decreased, which is commonly referred to as a falling dollar.
17. Earnings per share, return on sales, and return on equity are all _______ ratios.
The correct answer is B. profitability. Earnings per share, return on sales, and return on equity are all measures of profitability, as they assess a company's ability to generate profits.
18. Regarding bonds, which statement is most accurate?
The correct answer is A. Bond holders are creditors, not owners. Bond holders are lenders who provide financing to companies or governments in exchange for regular interest payments and the return of the principal amount upon maturity. They do not have ownership rights in the same way as common stockholders.
19. The first step in taking control of your finances is
The correct answer is B. preparing a budget. Preparing a budget is considered the first step in taking control of your finances as it allows you to plan and allocate your income towards different expenses and savings goals.
20. The first step in the accounting cycle is
The correct answer is A. putting information into journals. The accounting cycle begins with recording financial transactions in journals, which are chronological records of individual transactions.
22. A specialized accounting book in which information is posted into specific categories so managers can find information about one account in the same place is called a
The correct answer is A. ledger. A ledger is a specialized accounting book or system that organizes and summarizes financial information by specific accounts, allowing managers to find information about one account in the same place.
23. When planning for your future, an investment in a college education will, above all,
The correct answer is C. improve your earning potential. Investing in a college education can greatly improve your earning potential by providing you with knowledge and skills that can lead to higher-paying job opportunities.
24. The type of accounting concerned with providing information and analyses to managers within the organization is referred to as
The correct answer is B. managerial accounting. Managerial accounting focuses on providing financial information and analyses to managers within an organization to aid in decision-making and planning.
25. With respect to the Federal Reserve, the discount rate is the
The correct answer is A. interest rate charged for loans to member banks. The discount rate is the interest rate charged by the Federal Reserve to member banks for short-term loans. It is used as a tool to regulate the money supply and encourage or discourage borrowing.