Chapter 13 Test Questions Flashcards
(15 cards)
Corporations receive no proceeds from the resale of their stock
T or F
True
A government may use deficit financing to smooth tax rates over time
T or F
True
Generally if people begin to expect a company to save higher future profits, the price of the company’s stock will begin to decrease
T or F
False
Skeptics of government policy to reduce taxes on saving argue that it would primarily benefit the rich
T or F
True
When economists refer to investment, they men’s the purchasing of stocks and bonds and other types of saving
T or F
False
In a closed economy if Y and T remain the same, but G rose, and C fell but by less than the rise in G, what would happen to public and national saving
Public and national savings would fall
As chief financial officer you sell newly issued bonds on behalf of your firm. Your firm is…
Borrowing directly
Mallard Corp has a price-earnings ratio of 15, paid a divided of 1$, and retained earnings of 2$ a share. What was the price of a share of Mallard stock?
45$
Which of the following is correct
The financial system channels funds from savers to borrowers
Which of the following involves financial intermediation
A bank makes a loan
If research in motion inc sells a bond it is
Borrowing directly from the public
Which of the following would not be a result of replacing the income tax with a consumption tax so that interest income was no longer taxed
Investment would decrease
If there is a surplus of loanable funds, then…
The quantity of loanable funds supplied is greater than CJ d quantity of loanable funds demanded and the interest rate is above equilibrium
The country of Biebmundo does not trade with any other country. It’s GDP is 30 billion. It’s government purchases 5 billion worth of goods and services each year, collects 7 billion in taxes, and provides 3 billion in transfer payments to households. Private saving in Bienmundo amounts to 5 billion. What are consumption and investment in Bienmhndo
21 billion and 4 billion respectively
Buskin’s Corp has issued 2 million shades of stock. It’s earnings were 10 million, of which if regained 6 million. What was the divided per share?
2$
