Search
Info
Warning
Danger

Study Resources (Business Management)

1The relative purchasing power of a currency is: •the exchange rate expressed in ounces of gold. •the value of one currency in terms of the goods and services a unit will purchase compared to an equivalent amount of another currency. •the official value of one nation's currency compared to the official.
3 Views
View Answer
61) What can a successful business offer to the communnity? a. contention and opposition b. employment and income c. security and law d. negotiation and regulation 62) Describe what a socially responsible company can offer to the community. a. It advocates for society’s well-being. b. It advances business interests. c. It shows negligence to the environment. d. It avoids.
0 Views
View Answer
31) Which of the following refers to an interconnected system of different demographic factors? a. a technological environment b. an economic environment c. a political-legal environment d. a socio-cultural environment 32) Which of the following would MOST likely change income distribution demographics? a. a political scandal b. an aging population c. an economic slump d. A social movement 33) Which.
0 Views
View Answer
141 Capital control is described by all of the following except: •restricting merchandise trade. •restricting the trade in foreign exchange. •channeling the currency trade through the government. •restricting cross-border financial transactions. •government interventions. •interbank trades. •black markets. •trade in goods and in services. •capital controls. •interest rate management by the central.
0 Views
View Answer
91) Which environment might be defined as including groups and organizations that have a direct relationship with the business? a. micro-environment b. macro-environment c. management environment d. machinery environment 92) _____________ is the external environment over which the organization can exert little influence. a. The macro-environment b. The micro-environment c. The management environment d. The material environment 93) Identify the.
0 Views
View Answer
131More realistically, the liquidity function is not ______ but a(n) ______ function of the demand for real balances based on changes in the ______. •constant; decreasing; nominal rate of interest •increasing; constant; real rate of interest •decreasing; increasing; level of real income •constant; increasing; real rate of interest 132Incorporating the liquidity preference.
0 Views
View Answer
121The forward contract differs from a futures contract in that: •the forward contract is to be settled immediately.   •the futures contract is for a fixed amount and matures at certain arranged dates, whereas the forward contract can be for any amount. •the futures contract cannot be traded in a market, whereas the.
0 Views
View Answer
181Most foreign currency sales and purchases in the spot market are conducted by government officials. •True •False 182A spread in foreign exchange markets refers to a buying price greater than the selling price of a currency. •True •False 183A futures contract requires that the same individual who bought the contract.
0 Views
View Answer
•there are no arbitrage opportunities.   •prices are the same when expressed in a common currency. •the goods in question are identical. •All of the answers are correct. 12In equilibrium, all traded goods sell at the same price internationally. If the same goods are expressed in their home prices, then the.
0 Views
View Answer
81The long-run monetary model of the price level provides that: •the demand for money is always proportional to the supply of money. •when the demand for money decreases, prices respond very slowly. •as long as prices are flexible, a change in the supply of money or the demand for money will.
0 Views
View Answer
21) The following factor of production refers to the goods and services that make businesses more efficient and help companies stay up to date and competitive in the twenty-first century economy: _________. a. labour b. technology c. natural resources d. entrepreneurial talent 22) The following factor of production refers to any physical or intellectual work.
0 Views
View Answer
•a large and sudden currency depreciation.   •a fixed exchange rate regime in which the currency is adjusted very frequently to reflect market conditions. •a managed or dirty float, depending on the business cycle. •a drag on exchange rate adjustment caused by imperfect markets. 92Which nation took the bold step of.
0 Views
View Answer
•borrowing in the low-interest currency and lending in the highinterest currency without covering against a change in the exchange rates. •foolish actions that usually are not successful. •activities that are designed to raise or lower interest rates but are risky. •the practice of depositing all of one's funds in one.
0 Views
View Answer
1) A company earns a profit when ________. a. the company’s labour increases during the first five months of operation b. the company’s revenue is greater than its expenses c. the company successfully acquires a business loan d. the company is able to keep pace with technological processes 2) Which of the following will likely.
2 Views
View Answer
151Approximately how many different national currencies exist in the world today? •more than 150 •more than 5,000   •12 •535 152If 1 euro is priced at $1.25 and if 1 euro will also buy 88 Japanese yen (?1 = ¥88), in equilibrium, with no arbitrage opportunities, how much is the cross rate.
0 Views
View Answer
51Globalization trends may ____ the tendency for prices to converge. •retard •speed up •eliminate •render irrelevant •It is a price index for the top 20 stocks traded internationally. •It reflects inflation trends through trade in laptop computers and international price competition. •It is an index of the price of McDonald's.
0 Views
View Answer
141Other nominal anchors or targets, such as rules for monetary growth, sometimes fail to optimize economic conditions in the short run because: •monetary growth rates are unrelated to inflation.   •it is complicated to figure out how to hold down money creation. •corrupt politicians pay no attention and give out extra.
0 Views
View Answer
•have no separate legal tender. •all are pegged to the euro. •all are pegged to the dollar. •are fixed against a single currency. 102 If a nation abandons its own currency and decides to use another nation's currency as its own circulating currency, this is known as: •euro-zoning. •dollarization. •a managed.
0 Views
View Answer
51) In the Canadian economy, identify which of the following roles the government uses to influence business activity. a. tax collector b. distributor of information c. purchaser of equipment d. emotional intelligence 52) Canada’s overall economic competitiveness is ranked __________ in the world and second among the G7 countries. a. second b. ninth c. fifth d. seventh 53) Identify.
0 Views
View Answer
101) Non-profit organizations do not operate like a business. a. True b. False 102) Every organization that generates revenue and pays expenses is considered a business. a. True b. False 103) All businesses provide a product. a. True b. False 104) For business products to be considered goods, they must be sold directly to consumers. a. True b. False 105) Erin runs.
0 Views
View Answer
171In equilibrium, the interest parity condition requires that: •all rates of returns will equalize. •all spot and forward rates will equalize. •the home interest rate minus its expected rate of currency  depreciation (against the foreign country) will equal the foreign interest rate on similar assets.   •all rates of returns and forward.
0 Views
View Answer
41Considering data on exchange rate and price-level fluctuations in the United States and the United Kingdom from 1975 to 2009, it is clear that: •absolute and relative PPP hold in the long run. •absolute and relative PPP hold in the short run. •absolute and relative PPP do not hold in.
0 Views
View Answer
111In 2007, the volume of currency traded in the foreign market was: •$3.2 billion. •$32 billion. •$321 billion. •$3210 billion. 112What percent of currency transactions involve a trade in the spot market? •30% •40% •60% •90% 113A transaction cost associated with spot trading is: •travel to and from the market. •shipping.
0 Views
View Answer
111When there is a hyperinflationary period, large changes in exchange rates and price levels happen ________ during periods of more stable prices and exchange rates. •at about the same rate as •more slowly than •much more rapidly than •slightly more rapidly than 112A lesson from hyperinflationary periods is that: •real GDP seems.
0 Views
View Answer
111) Baby boomers, the generation born between 1943 and 1960, represent the majority of the aging population in Canada. a. True b. False 112) Baby boomers do not appeal to companies as a target market because they do not have much spending power. a. True b. False 113) According to Statistics Canada, by 2026—when most baby.
0 Views
View Answer
41) Which of the following plays the MOST important role in allowing all companies, no matter the size, to compete in the global market? a. effective marketing b. a talented workforce c. government subsidies d. technological advances 42) Identify one of the following factors that BEST describes why many multinational companies seek technology services and.
0 Views
View Answer
31If a nation experiences 10% inflation and its trading partner does not, and if PPP holds, what happens to its nominal exchange rate? •It depreciates by 10%. •It appreciates by 10%. •It does not change. •It becomes negative. 32If a nation experiences 10% inflation and its trading partner does not,.
0 Views
View Answer
81) Natural resources in the factors of production include ______________. a. natural gas b. partners trees used for lumber to build houses; and coal, oil, and natural gas used to create energy are all examples of natural resources. c. equipment trees used for lumber to build houses; and coal, oil, and natural gas used to.
0 Views
View Answer
141) What are the main functional areas in businesses? 142) Distinguish between the internal and external environment of businesses. 143) Define the term internal environment. 144) Compare micro-environment and macro-environment. The macro-environment is the external environment over which the organization can exert little influence. 145) Describe the PEST model. .
0 Views
View Answer
91Under the monetary approach to exchange rates, if the exchange rate has appreciated, this suggests that: •the home country's money supply has fallen. •the foreign country's income has risen. •the home country's income has fallen. •the home country's money supply has risen. 92When we consider growth rates of the variables,.
0 Views
View Answer
101If prices are flexible and PPP holds, it is possible to forecast the exchange rate in the long run whenever ______ change in a nation ceteris paribus. •real income and nominal growth rate of the money supply •levels of trade and financial flows •capital controls •short-run nominal interest rates 102Whenever the.
0 Views
View Answer
Country Exchange Rate per Dollar Price of a Computer in Local Currency Brazil (real) 2.2 1200 Mexico (peso) 10 6,000 India (rupee) 45 18,000 South Africa (rand) 8 3,500 Table: Exchange Rates and Prices (Table: Exchange Rates and Prices) Suppose a computer costs $500 in the United States. The price of a computer in local currency in Brazil reflects the law of one price. •True •False Country Exchange.
0 Views
View Answer
71) Which sector includes goods and services produced by private individuals or groups as a means of enterprise for profit? a. the public business sector 72) Which of the business sectors includes non-governmental, non-profit organizations that receive support from individual citizens, governments, and businesses? a. the non-profit and voluntary sector b. the voluntary business.
0 Views
View Answer
71In general, monetary economic theory states that the demand for money is proportional to: •nominal income. •the unemployment rate. •the population. •the exchange rate. •proportional to nominal income. •proportional to real income. •disproportional to real GDP. •determined by the real rate of interest. 73Assume nominal GDP = PY, and k.
0 Views
View Answer