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Chapter 14 - Financial Crises, Stabilization and Deficits Flashcards | StudBud
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Chapter 14 - Financial Crises, Stabilization and Deficits
Chapter 14 - Financial Crises, Stabilization and Deficits
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StudBud Administration
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The Stock Market, The Housing Market and Financial Crises
Flashcards
10 cards
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Practice quiz
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Questions
10
Answers
1
Wealth and investment fall when there is a stock market
boom.
merger.
crash.
split.
2
A stock is
document verifying a loan to a company.
certificate - certifies ownership of a portion of a company
a retained earning of a corporation.
a promise of capital gains to its owner.
3
If interest rates are ______, one dollar today is worth more than one dollar one year from now.
positive
zero
all of the above are correct
negative
4
If the interest rate rises, you would expect the price of any stock to
rise.
be unaffected.
fall
fall to zero.
5
On a $1K - 10 year coupon bond with a rate of a 4.5%, the coupon payment would be:
$45
Need information
More than $45
Less than $45
6
What model/theory did you study in class related strictly to money?
Comparative Advantages
IS-LM model
Supply/demand of goods and services
AS-AD model
7
________ policy and ________ policy have similar recognition time lags.
Contractionary; expansionary
Implementation; response
Growth; recession
Fiscal; monetary
8
The time it takes the Fed or Congress to change economic policy is
a response lag.
a recognition lag.
an implementation lag.
none of the above
9
If the coupon payment is $45 and i-rates increase to 6% The new price of the bond would be
Less than $700
More than $700
Need more information
$700
10
An example of automatic stabilizers is
government spending rising in a recession.
all of the above
taxes rising in a recession.
taxes falling in an expansion.
