9) If a stock rose from $10 to $30 over ten years, the true an a. was less than
ID: 2797852 • Letter: 9
Question
9) If a stock rose from $10 to $30 over ten years, the true an a. was less than 20 percent b. was 20 percent c. was greater than 20 percent d. cannot be determined 10) Which of the following is the least broad-based measure of stock prices? a. Nasdaq market index b. S&P; 500 stock index c. Dow Jones industrial average d. Russell1 3000 11) A federal government deficit may be financed by 1. the general public buying government bonds 2. commercial banks buying treasury bills 3. the Federal Reserve selling securities a. 1 and 2 b. 1 and 3 c. 2 and 3 d. all of the above 12) If the Federal Reserve lowers the target federal funds rate, a. the discount rate rises b. liquidity in the banking system is increased c. securities prices fall d. required reserves are decreasedExplanation / Answer
9) The stock rose from $10 to $30 over 10 years, i.e., 200% increase. If it increased 20% in first year, then next year it would have increased by a little less because this return would be on the 20% increased price of the previous. Similarly, for year 3 it would be less than year 2. So, on an average, the return would be less than 20%. (option a)
12) Federal funds rate is the rate at which one bank lends to other banks in the system. If the Federal Reserve lowers the target federal funds rate the liquidity or the quantitity of money supply in the banking system is increased. (option b)
I only see questions 9 to 12. I don't see any question 13. Let me know in the comments, maybe I can help you with that too.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.