Business. Answer True or False Questions. Three sections.

Business Assignment

1. Raising the discount rate is action taken by the Fed to stimulate                   T            F    the economy.       2.  The process of determining what an asset is currently worth is                   T             F      called valuation.       3.  A Treasury Bill is a short-term debt instrument issued by the state          T           F government       4. The Chairman of the Federal Reserve is Bill Bradley.                                 T            F       5.The New York Stock Exchange is considered to be a “virtual” exchange   T            F   as opposed to a physical exchange.        6.  Many people argue that the corporate form of business is the business      T           F        type most responsible for our standard of living       7.  The Euro was created in the year 1969.                                                      T            F                 8.  Liquidity is the ease with which an item can be converted into cash.         T F                  9.  Bretton Woods is located in Maine.                                                          T F         10. The reserve requirement is the primary tool of The Fed.                           T          F         1) If the exchange rate changes from $1 acquires 140 Euro to $1 acquires 80 Euro, the Euro is said to have:              A) appreciated B) depreciated C)   drifted D) none of the above       2)  Selling a stock you do not own with the expectation you can buy it at a lower price in a few days is referred to as :    A) a long position B) a capital gain C)  a short sale D)  a day trade       3) A market maker working on the organized exchange called the New York Stock Exchange is referred to as a:               A)  investment banker B) specialist C) stockbroker D) portfolio manager .       4)   A firm’s first sale of common stock to the general public is called a(an):             A)  IPO B)  FPO C)  GTO D)  MPO    5)   A securities dealer will offer to sell a stock at the _____________ price.   A) bid B) ask C) market D) new       6)   The primary tool of The Fed is:             A)  reserve requirements B)  interest rates C)  open market operations D)  discount rate       7)   An investor who would accept additional risk only in exchange for receiving a lower return would be referred to as a:             A)  risk averse investor B)  risk neutral investor C)  risk seeking investor D)  none of the above       8)   If its imports exceed its exports a country is said to be a:               A)  bad trader B)  net exporter C)  net importer D)  good trader         9)   The interest rate the Federal Reserve Bank of Boston would have to pay to borrow       funds from the Federal Reserve Bank of St Louis is called the:             A)  prime rate B)  discount rate C)  inflation rate D)  fed funds rate   10)   If the Fed were to raise the reserve requirement for banks in the banking system it would be directed towards achieving which economic goal:             A)  tight money B)  easy money C)  a recession D)  a growth period     Please ​identify and explain ​ the 3 tools of monetary policy used by the Fed to manage our economy.  Explain how the Fed would use these 3 tools to stimulate ​ the economy.   
   1) Taxing and spending by the Federal government is referred to as:              _________________________________________________________       2) Investment bankers will advertise an upcoming IPO in a newspaper advertisement which is called a:     ________________________________________________       3) Fiscal policy is executed by:     _________________________________________________       4) The sum of daily trading in a firm’s common stock, totaled across all of the exchanges where the stock is traded is referred to as:         ______________________________________________________     5) A securities trade that allows the trader to place an order for the day at a specified price is called a:          _______________________________________________       6) A securities dealer would offer to sell a stock at the            _______________________________________________ price.      Based upon our viewing of the Inside Job Film, please describe the top 3 reasons for the cause of the 2008-2009 financial crisis and the affects the crisis had on the economy. (min 200 words)