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Dashboard My courses EP2 Genap 2021/2022 Ujian/Exams Ujian Tengah Semester/Mid-term Exam
(Reguler dan IUP)
a. The term of a bond is determined entirely by how much sales commission the buyer of the bond pays when he
or she purchases the bond.
b. Term refers to the various characteristics of a bond, including its interest rate and tax treatment.
c. The term of a bond is determined entirely by its credit risk.
d. Interest rates on long-term bonds are usually higher than interest rates on short-term bonds.
An increase in nominal U.S. GDP necessarily implies that the United States is producing a larger output of goods and
services.
Select one:
True
False
Question 3 Complete Marked out of 1.00
Cole, a financial advisor, has told his clients the following things. Which of his statements is not correct?
A country reported nominal GDP of $100 billion in 2010 and $75 billion in 2009. It also reported a GDP deflator of
125 in 2010 and 120 in 2009. Between 2009 and 2010,
Unemployment compensation is
The content of the basket of goods and services used to compute the CPI changes every month.
Select one:
True
False
Question 7 Complete Marked out of 1.00
a. Unions play a larger role in the United States than in European countries such as Belgium, France, and
Germany.
b. Because of the popularity of unions, most workers in the United States discuss their wages, benefits, and
working conditions with their employers as a group.
c. Individuals have more market power over their wages than a group of individuals in a union.
d. Union membership in the United States peaked in the 1940s and 1950s.
Suppose you are deciding whether to buy a particular bond. If you buy the bond and hold it for 4 years, then at that
time you will receive a payment of $10,000. If the interest rate is 6 percent, you will buy the bond if its price today is
no greater than
a. $7,920.94.
b. $7,672.58.
c. $6,998.98.
d. $8,225.06.
Table 28-3
a. 4.7%
b. 1.5%
c. 6.2%
d. 3.1%
If real GDP doubles and the GDP deflator doubles, then nominal GDP
a. remains constant.
b. quadruples.
c. triples.
d. doubles.
Question 12 Complete Marked out of 1.00
PZX Corporation has the opportunity to undertake an investment project that will cost $10,000 today and yield the
company $13,310 in 3 years. PZX will forgo the project if the interest rate is higher than 10 percent.
Select one:
True
False
Select one:
True
False
Adults who were waiting to be recalled to a job from which they had been laid off are included in the Bureau of Labor
Statistics' "employed" category.
Select one:
True
False
Question 16 Complete Marked out of 1.00
Table 24-4.
Will's expenditures on food for three consecutive years, along with other values, are presented in the following table.
Year
1 2 3
Expenditures on food $5,000 $5,800 $6,600
Consumer price index 160.0 168.0 x
Refer to Table 24-4. If the nominal interest rate was 8 percent in Year 2, then
During a presidential campaign, the incumbent argues that he should be reelected because nominal GDP grew by 12
percent during his 4-year term in office. You know that population grew by 4 percent over the period and that the GDP
deflator increased by 6 percent during the past 4 years. You should conclude that real GDP per person
a. decreased.
b. was unchanged.
c. grew, but by less than 12 percent.
d. grew by more than 12 percent.
Question 18 Complete Marked out of 1.00
Figure 26-3
The figure shows two demand-for-loanable-funds curves and two supply-of-loanable-funds curves.
Refer to Figure 26-3. Which of the following movements would be consistent with the government budget going from
deficit to surplus and the simultaneous enactment of an investment tax credit?
a. it may be in the best interest of firms to offer wages that are above the equilibrium level.
b. it is efficient for firms to set wages at the equilibrium level.
c. the most efficient way to pay workers is to pay them according to their skills.
d. setting wages at the equilibrium level may increase unemployment.
Table 23-1
The following table contains data for Chereaux for the year 2019.
GDP $200
Income earned by citizens abroad $9
Income foreigners earn here $5
Losses from depreciation $6
Indirect business taxes $10
Statistical discrepancy $0
Retained earnings $8
Corporate income taxes $12
Social insurance contributions $30
Interest paid to households by government $8
Transfer payments to households from government $55
Personal taxes $60
Nontax payments to government $11
a. $178.
b. $259.
c. $201.
d. $196.
Question 21 Complete Marked out of 1.00
Wanda quit her job because she was unhappy at work. Arnold was laid off from his landscaping job because his
company was downsizing. Who is eligible for unemployment insurance benefits?
Which of the following policies can the Fed follow to increase the money supply?
A Texas household receives a Social Security check for $1500, which it uses to purchase a $40 pair of shoes made in
Thailand by a Thai firm, a $1240 television made by a Korean firm in Korea, and $220 on groceries from a local store.
As a result, U.S. GDP
a. increases by $220.
b. increases by $1500.
c. increases by $280.
d. increases by $40.
Hector puts $150 into an account when the interest rate is 4 percent. Later he checks his balance and finds he has about
$168.73. How long did Hector wait to check his balance?
a. 3.5 years
b. 3 years
c. 4 years
d. 4.5 years
Scenario 24-1
Sue Holloway was an accountant in 1944 and earned $12,000 that year. Her son, Josh Holloway, is an accountant today
and he earned $210,000 in 2017. Suppose the price index was 17.6 in 1944 and 218.4 in the current year.
Refer to Scenario 24-1. Josh Holloway's current year income in 1944 dollars is
a. $16,923.
b. $149,009.
c. $26,059.
d. $11,528.
Question 27 Complete Marked out of 1.00
Rita puts $10,000 into each of two different assets. The first asset pays 10 percent interest and the second pays 5
percent. According to the rule of 70, what is the approximate difference in the value of the two assets after 14 years?
a. $14,000
b. $12,000
c. $15,500
d. $20,000
You pay for cheese and bread from the deli with currency. Which function of money does this best illustrate?
a. Unit of account
b. Liquidity
c. Store of value
d. Medium of exchange
If the nominal interest rate is 4 percent and the inflation rate is 3 percent, then the real interest rate is
a. −1 percent.
b. 1 percent.
c. 7 percent.
d. 12 percent.
Sheila is on a temporary layoff from her automobile factory job but has not looked for work in the last four weeks. The
Bureau of Labor Statistics counts Sheila as
a. Real GDP varies over time and sales and profits move with real GDP.
b. If stockholders become aggravated with the way a CEO runs a company, the price of that company's stock
might fall in the stock market.
c. When a paper producer has declining sales, it is likely that so will other paper producers.
d. Holding stocks in many companies carries the risk of a reduced average return.
Bank runs and the accompanying increase in the money multiplier caused the U.S. money supply to rise by 28 percent
from 1929 to 1933.
Select one:
True
False
Table 29-5
a. 7.5.
b. 13.3.
c. 2.
d. 50.
Question 34 Complete Marked out of 1.00
Figure 27-1
Refer to Figure 27-1.Suppose Britney begins with $1,050 in wealth. Starting from there,
a. the pain of losing $300 of her wealth would equal the pleasure of adding $300 to her wealth.
b. the pleasure of adding $300 to her wealth would exceed the pain of losing $300 of her wealth.
c. she would be willing to accept a coin-flip bet that would result in her winning $300 if the result was "heads"
or losing $300 if the result was "tails."
d. the pain of losing $300 of her wealth would exceed the pleasure of adding $300 to her wealth.
Question 35 Complete Marked out of 1.00
Suppose a closed economy had public saving of −$1 trillion and private saving of $3 trillion. What are national saving
and investment for this country?
a. $4 trillion, $2 trillion
b. $2 trillion, $3 trillion
c. $3 trillion, $3 trillion
d. $2 trillion, $2 trillion
In order for currency to be widely used as a medium of exchange, it is sufficient for the government to designate it as
legal tender.
Select one:
True
False
Scenario 29-1
The Monetary Policy of Tazi is controlled by the country's central bank known as the Bank of Tazi. The local unit of
currency is the Tazian dollar. Aggregate banking statistics show that collectively the banks of Tazi hold $300 million of
required reserves, $75 million of excess reserves, have issued $7,500 million of deposits, and hold $225 million of
Tazian Treasury bonds. Tazians prefer to use only demand deposits and so all money is on deposit at the bank.
Refer to Scenario 29-1. Suppose that the Bank of Tazi changes the reserve requirement to 3 percent. Assuming that
the banks still want to hold the same percentage of excess reserves what is the value of the money supply after banks
adjust to the change in the reserve requirement?
a. $10,000 million
b. $7,500 million
c. $9,375 million
d. $12,500 million
Question 38 Complete Marked out of 1.00
a. tax revenue that the government has left after paying for its spending.
b. spending that the government undertakes in excess of the taxes it collects.
c. income that businesses have left after paying for the factors of production.
d. income that households have left after paying for taxes and consumption.
Select one:
True
False
a. Economists almost all agree that the evidence for stock market irrationality is convincing and the departures
from rational pricing are important.
b. Speculative bubbles could arise, in part, because the price that people pay for stock depends on what they
think someone else will pay for it in the future.
c. The value of the stock depends only on the stream of future dividend payments.
d. Some evidence for the existence of market irrationality is that informed and presumably rational managers of
mutual funds generally beat the market.
a. price level minus the price level from the previous period.
b. price level in an economy.
c. percentage change in the price level from the previous period.
d. change in the price level from one period to the next.
g p p
The real interest rate tells you how fast the purchasing power of your bank account rises over time.
Select one:
True
False
a. the stock market, and we associate the term equity finance with the bond market.
b. financial markets, and we associate the term equity finance with financial intermediaries.
c. financial intermediaries, and we associate the term equity finance with financial markets.
d. the bond market, and we associate the term equity finance with the stock market.
Over the past several decades, the difference between the labor-force participation rates of men and women in the U.S.
has
a. gradually increased.
b. remained constant.
c. been eliminated.
d. gradually decreased.
Suppose OPEC succeeds in raising world oil prices by 300 percent. This price increase causes inventors to look at
alternative sources of fuel for internal-combustion engines. A hydrogen-powered engine is developed which is cheaper
to operate than gasoline engines. Which problems in the construction of the CPI does this situation represent?
The money supply of Granov is $10,000 in a 100-percent-reserve banking system. If the Central Bank of Granov
decreases the reserve requirement ratio to 10 percent, the money supply could increase by no more than $9,000.
Select one:
True
False
a. The euro
b. Monopoly money
c. A gold bar
d. Baseball cards
Which of the following statements is correct about the relationship between inflation and interest rates?
a. In order to fully understand interest rates, we need to know how to correct for the effects of inflation.
b. The interest rate is determined by the rate of inflation.
c. There is no relationship between inflation and interest rates.
d. In order to fully understand inflation, we need to know how to correct for the effects of interest rates.