91.Cash flows are grouped in the statement of cash flows into the following major categories:______.
+ M4 @% r2 ]8 ` A.cash receipts, cash disbursements, and noncash activities
5 B: q( Z. r! \( `2 i- ~ B.direct cash flows and indirect cash flows
3 W: q _" ?6 w. \% z0 k C.operating activities, investing activities, and collecting activities
0 x# c4 [5 Z! L5 v' Z9 S4 O# ? D.operating activities, investing activities, and financing activities0 T3 R5 k/ m$ w; u8 X
92.A company that is losing money will have a P/E ratio of what? ______. A.Negative P/E, i( v4 V3 x3 ?1 A! T
B.Very small P/E' t, d. k: f" w, {! w) T1 R4 R
C.It does not have a P/E8 S/ |( o$ y' L3 w$ C8 T- y( k
D.None of the above
3 u2 C0 H8 b9 x9 z1 ] 93.Suppose the average level of all prices has doubled over the last ten years.We can come to a conclusion that ______.0 ^, `/ G a, f9 H0 k! f. c
A.the price of money has dropped by 50 percent
0 ^% m- f2 u3 U6 c* ? B.the size of the money supply has doubled
* w% r0 Z! C7 v* S C.the value of money has been reduced by one-half" s9 b; N$ L; P* q+ _) v1 H
D.the velocity of money has increased by 50 percent, F# _+ i9 l3 n" M# g" a
94.A company with a P/E ratio higher than the market or its industry means that ______.
& z# G, N2 b: |3 ?9 r A.earnings are expected to grow at a slower rate than the market
f) X4 _0 ?1 u/ P) O B.earnings are expected to grow at a faster rate than the market4 Z+ B" W! H7 [1 s
C.it will be a low risk investment
# v) S: _# ]1 ]: E. T8 z+ r D.none of the above
: t; }1 i2 s$ T" u1 K' n9 J* J. ] 95.The following rules of debit and credit in accounting are all true except that ______.
0 L; T A9 C4 l: K A.increases in assets are recorded on the debit side of the account6 k& |+ J" }9 p
B.increases in retained surplus dividends are recorded on the debit side of the account J# C. ^# c, }. z! G9 \
C.decreases in liabilities are recorded by debits D.decreases in expenses are recorded by credits3 `0 D9 K6 P5 R, j! M
96.The money supply should be large enough to enable the public to buy, at current prices, all______ over a given period of time.+ ]+ a* V4 S- I/ b# h) G- y
A.the goods and services the economy has produced8 a d! ]& z8 y9 a7 @7 U
B.the goods, services, and financial assets the economy has produced
" i, v+ Z6 V1 B5 m8 X C.the goods and services the economy is able to produce1 n- A- h5 A2 x5 w/ O
D.the goods, services, and financial assets the economy is able to produce$ k0 V/ \# m6 s! A1 ?
97.When the U.S.real interest rate is low, owning U.S.assets is ______ and so U.S.net foreign investment is ______.- X- ?) o8 N* X# ~
A.more attractive...high/ ]2 A/ @: C* r/ j
B.more attractive...low; n' O2 R" I$ [5 O' A# N2 P; w
C.less attractive...high0 k1 C2 d) e' f+ s
D.less attractive...low* y- M' D& U# m, p* K& _5 f% C
98.In the open-economy macroeconomic model, the quantity of dollars demanded in foreign-currency exchange market ______.7 D+ Q5 N, x5 t# H% d h
A.depends on the real exchange rate.The quantity of dollars supplied in foreign-exchange markets depends on the real interest rate. h! N. [+ ^5 O! e
B.depends on the real interest rate.The quantity of dollars supplied in foreign-exchange markets depends on the real exchange rate* K, N& w3 U7 t% ?
C.and the quantity of dollars supplied in the foreign-currency exchange market depend on the real exchange rate% b) E, V; H0 @$ m* k; T
D.and the quantity of dollars supplied in the foreign-currency exchange& R$ r; C. o8 v8 |! Y; M/ ]
99.Assume a bank with the duration gap of -1.A ______ in interest rates will ______ bank's net worth.$ Z( i# h: L% @- I/ `8 S
A.fall...reduce
% D* |2 M! }6 a/ |1 L5 F# Y B.fall...increase( T& ?& e% @+ R7 v& e W# k( R
C.rise..-.reduce+ N! U0 G- Y& ~2 j
D.change...have no effect on
* B3 K! J8 K6 s4 R/ s( F 100.Adverse selection is a problem associated with equity and debt contracts arising from ______.
& ]+ g% a/ \9 y& s5 g) Y& A A.the lenders' ability to legally require sufficient collateral to cover a 100% loss if the borrower defaults
* h' I; ^2 Q: ~- Z. ` B.the lenders' relative lack of information about the borrowers' potential returns and risks of his investment activities0 l0 Y% E* ^& c) ~, [, e0 I
C.the borrowers' lack of incentive to seek a loan for highly risky investments- d( W* U& S6 o8 h% f% m$ H
D.none of the above |