69. A barter economy is one that does not possess _______.
* u2 E' k& F3 | A. any wealth B. printed currency6 S3 I5 a- |1 c" Y) O+ k& z
C. a medium of exchange D. gold
/ R2 C0 x( Q) p6 h6 N 70. Which of the following is not true of airway bill? ______." ^2 @) C& m$ D9 J7 C
A. When goods are delivered to the airline, the airway bill is signed by them or their agents as a receipt of the goods
6 V+ s9 ]0 m1 p# E4 B7 i; x B. Airway bill is a document of title to the goods
: `) m& L9 z3 B4 A. i) {. } C. Airway bill may also provide evidence of despatch of the goods where it has been stamped indicating details of the relevant flight
# @' r; u# s0 t2 X; X& E D. None of the above
: _- J: T" W- `1 m6 m% y 71. The value of money varies _____.+ J8 M" Q- Z- b! I. b( _
A. directly with the unemployment rate
; {6 X3 q1 [+ o. ` d- ]4 x0 U$ O B. directly with the price level
4 W9 r5 \$ Z* `5 N: F C. inversely with the unemployment; a: @5 k8 _9 Q) d: [( H
D. inversely with the price level' F; O6 ]$ c( m7 Y; A+ w3 ?6 L: @
72. The economics news on the television reports that the dollar has strengthened relative to the Japanese yen. This means that ______.6 _3 E* k0 \' l/ @
A. the dollar has depreciated relative to the yen
A/ [8 N- f9 k p$ r% H B. the dollar can now purchase more yen& F2 Y- I$ R: A+ p$ k% r) w
C. the yen can now purchase more dollars, b% @+ {+ j, I
D. the US trade balance with the Japanese economy has improved
5 \ h5 c. x+ W7 c 73. The theory of international exchange that holds that exchange rates are set so that the price of similar goods in different countries is the same is the ______.- a+ l( A. }4 P! ]% d
A. price feedback theory
/ U4 S: Z! O2 F" |4 }- p B. trade feedback theory
7 P0 C: ]" S4 k8 g3 B+ ^9 M, n+ ^ { C. purchasing power parity theory1 H8 C2 l' h$ d2 i( G
D. J-curve theory, g9 n) M. C6 d; @. `' {
74. According to the optimal portfolio theory, where should portfolios lie? ______.7 e* `0 Z$ f, c, h1 J
A. On the efficient frontier( b3 ^% r" q4 }% h9 \
B. Above the efficient frontier* e0 A2 _; o1 e" m1 u ~
C. Under the efficient frontier
$ C4 m* f3 @% L% [; i* g D. Anywhere, as long as the portfolio is diversified
+ q& w- f" P/ t 75. Which of the following is not a user of management accounting information? ______.. y6 q5 o, U8 M( }- G
A. Store manager- I/ }" `: z8 E9 P9 L7 J4 e
B. Creditor
2 G' }3 I# | n C. CEO+ ]1 d9 D' }2 }9 n
D. CFO3 C6 \) J3 r% V; J7 v& \* v
76. Based on the scenarios below, what is the expected return for a portfolio with the following return profile? ______.
0 {/ V$ u- e) l/ @5 h7 t) P Market Condition
, \3 Q( {! K8 ~7 Q* r' Y; m bear Normal Bull Probability 02 0.3 05 Rate of return —25% 10% 24%. E; g1 q% ~. Z" }+ s6 [ K
A. 4% B. 10% C. 20% D. 25% Use the following expectations on Stocks X and Y to answer questions 17 through 19 (round to the nearest percent).
1 X; \0 s; ~) y2 f: ?. x+ ` Bear Market Normal Market Bull Market Probability 0.2 0.5 0.3 Stock X_ -20% 18% 50% Stock Y -15% 20% 10%0 C; g9 B( d" q" [! v
77. Financial markets serve to channel funds from ______.
: X1 _- @& C- o+ w2 [" {6 U. f A. the government to contractors! @ S6 P; _9 [ o8 S* v( a
B. investors to consumers. d' q; T2 i3 X' [7 \, d
C. consumers to producers
% ^. w7 [9 J' d% D; J+ L) ` N D. savers to investors" u; J& C& E2 U7 G+ l# X
78. The agreements that were reached at the Bretton Woods conference in 1944 established a system .& X, N% p0 }7 s9 `0 s* J
A. of essentially fixed exchange rates under which each country agreed to intervene in the foreign exchange market when necessary to maintain the agreed-upon value of its currency
: ~( y# V' y# [ j. k4 E7 @8 v B. of floating exchange rates determined by the supply and demand of one nation‘s currency relative to the currency of other nations& L* V! i, ?2 y ^4 J# ~; K4 K
C. that prohibited governments from intervening in the foreign exchange markets& p. W$ H% W9 Y( s# U
D. in which the values of currencies were fixed in terms of a specific number of ounces of gold, which in turn determined their values in international trading$ c/ B0 S3 ]- Z3 \: L/ E0 a- R" q& j
79. Which of the following statements is not consistent with generally accepted accounting principles relating to asset valuation?
+ |" s: C1 a' s! t( X# l% b+ D .
2 m5 S. B* c3 R/ \. R A. Assets are originally recorded in accounting records at their cost to the business entity
* P, q/ l/ `1 x7 q# F( Y0 B B. Accountants prefer to base the valuation of assets upon objective, verifiable evidence rather than upon appraisals or personal opinion
0 a; I1 T2 g( l! P" k6 _# ~ C. Accountants assume that assets such as office supplies, land and buildings will be used in business operations rather than sold at current market prices
: K$ F' p/ K5 W( J7 H5 h0 l: _1 o5 W D. Subtracting total liabilities from total assets indicates what the owner‘s equity in the business is worth under current market conditions
. b5 G! W( `0 [# S 80. A fiscal expansion in the UK ______ the pound sterling.+ I0 @& m% r# z Q. X
A. tends to appreciate
6 T, ]0 }3 j0 j B. tends to depreciate
9 U" e3 }1 b$ N: r, j C. does not affect the price of2 P& K. Z! X( s# e d
D. has no predictable effect on the price of
9 y& n+ i2 {- \% p6 w6 S p8 g6 i7 q) a 81. What are the expected returns for Stocks X and Y respectively? ______. |