Glendale Community College » Business Administration » BUSAD 101 - Introduction to Business » Spring 2020

Question #1

Two factors determine the price of a bond: ________ and ________.

A. market; risk

B. interest rate; discount rate

C. risk; interest rate

D. price of other bonds; the company selling the bond

Question #2

When the Fed sells government securities, banks have ________ money to lend and economic growth ________.

A. more; will accelerate

B. less; will accelerate

C. less; will slow

D. more; will slow

Question #3

Which of the following actions would have the effect of increasing the supply of money and credit and lowering interest rates?

A. The Fed raises the margin requirement.

B. The Fed raises the reserve requirement.

C. The Fed buys government securities.

D. The Fed raises the discount rate.

Question #4

Savings banks were originally established to make ________ loans.

A. home mortgage

B. business

C. automobile

D. agricultural

Question #5

An owner of which form of stock would receive dividend payments first?

A. convertible securities

B. standard stock

C. preferred stock

D. common stock