If the Federal Reserve wanted to increase the money supply,

Question 1. 1. If the Federal Reserve wanted to increase the money supply, it might: (Points : 2)Increase the reserve requirement.Buy U.S. securities directly from the Treasury.Buy U.S. securities on the open market.Sell U.S. securities on the open market.Question 2. 2. Jayco, Inc., sells blue ink for $4.00 a bottle. The ink’s variable cost per bottle is $2.00. Ink has fixed cost of $10,000. What is Jayco’s breakeven point in units? (Points : 2)6,000.7,500.5,000.2,500.Question 3. 3. A futures contract is not: (Points : 2)Illiquid.Backed by the clearinghouse.Standardized.Regulated.Question 4. 4. Your firm has a quick ratio of 1.5 and a current ratio of 1.9. Industry averages are 1.0 for the quick ratio and 2.0 for the current ratio. Which of the following is true about the firm’s working capital position? (Points : 2)The firm has less accounts receivable than other firms.The firm has more inventory than other firms in the industry.The firm has more accounts receivable than other firms in the industry.The firm has less inventory than other firms.Question 5. 5. How entities are systematically directed and controlled refers to which of the following? (Points : 2)Sustainability.Agents.Corporate governance.Internal controls.Question 6. 6. U.S. export transactions create: (Points : 2)A foreign demand for dollars and the satisfaction of this demand increases the supplies of foreign monies held by U.S. banks.A U.S. demand for foreign monies and the satisfaction of this demand increases the supplies of dollars held by foreign banks.A foreign demand for dollars and the satisfaction of this demand decreases the supplies of foreign monies held by U.S. banks.A U.S. demand for foreign monies and the satisfaction of this demand decreases the supplies of dollars held by foreign banks.Question 7. 7. Which of the following statements about capital structure is TRUE? (Points : 2)The tax shield on the interest expense of debt is normally not a factor when a firm’s management is making capital structure decisions.The capital structure is a function of the degree of debt usage by the firm, hence, business risk is not a factor in the capital structure decision.The target and the optimal capital structure are generally not equal to each other.The optimal capital structure maximizes the market value of the firm’s common stock.Question 8. 8. Capital budgeting is critical for all of the following reasons EXCEPT that: (Points : 2)A firm’s assets define a firm’s strategic plan.It requires forecasts of revenues over the asset’s life.It focuses on the purchase of assets that will be sold within one year.The firm loses some flexibility in its ability to invest in other assets.Question 9. 9. If a preferred stock that pays a $11.50 dividend is trading at $88.46, what is the market’s required rate of return for this security? (Points : 2)7.69%.13.00%.10.00%.11.76%.Question 10. 10. The process of maintaining the last three backups so that data files can be recreated from any one of them should a disaster occur is called: (Points : 2)rollback backup.tri-level backup.grandfather-father-son backup.check point backup.Question 11. 11. The following are all advantages of a Business Information System EXCEPT: (Points : 2)easy-to-detect fraud.consistency in application of rules and procedures.up-to-date information is available quickly.ability to analyze information that is recorded.Question 12. 12. One of the main benefits of EFT (electronic funds transfer) is: (Points : 2)lower taxes.no need to maintain minimum balance.assist in e-commerce.lack of fraud.Question 13. 13. As the number of compounding periods increases, what is the effect on the annual percentage rate (APR) and the effective annual rate (EAR)? (Points : 2)APR remains the same, EAR remains the same.APR increases, EAR remains the same.APR remains the same, EAR increases.APR increases, EAR increases.Question 14. 14. Which of the following characteristics of an array is not true? (Points : 2)Arrays predefine specific data for future retrieval within the system, yielding faster data access timeAn array is a collection of ordered values of a single data type, called elements.Arrays are very useful for very large databases, where efficiency is importantArrays are equivalent with queries within an information systemQuestion 15. 15. In connection with a standard cost system being developed by Flint Co., the following information is being considered with regard to standard hours allowed for output of one unit of product:To measure controllable production inefficiencies, what is the best basis for Flint to use in establishing standard hours allowed? (Points : 2)1.25.1.50.1.60.1.85.Question 16. 16. The Committee of Sponsoring Organizations of the Treadway Commission (COSO) internal control framework consists of five interrelated components. Which of the following is NOT a factor pertaining to the control environment component? (Points : 2)Operating performance reviews.Ethical values.Personnel development.Management integrity.Question 17. 17. If a nation’s goods exports are $55 billion, while its goods imports are $50 billion, we can conclude with certainty that this nation has a: (Points : 2)Balance of goods surplus.Balance of payments surplus.Positive balance on goods and services.Positive balance on current account.Question 18. 18. Assume a firm with a debt-to-equity ratio of 0.50 and debt equal to $35 million makes a purchase commitment for raw materials with a present value of $12 million that will be used over the next three years. For purposes of financial statement analysis, the best estimate of the debt-to-equity ratio at the present time would be: (Points : 2)0.343.0.500.0.573.0.671.Question 19. 19. Depreciation in the value of the U.S. dollar on the foreign exchange market will: (Points : 2)Make U.S. exports cheaper to foreigners.Make imports less expensive for U.S. consumers.Make U.S. exports more expensive for foreign consumers.Cause the U.S. to run a balance of payments surplus in the long run.Question 20. 20. The algorithm used in encryption: (Points : 2)Is available over the network.Is also encrypted along with the message.Is then destroyed for security purposes.Is the same algorithm used in decryption.