Page 8

50

31.

Chapter 2: Economics: The Framework for Business

M1 & M2 are commonly used definitions for money supplies. If you use the debit card connected to your checking account to make purchases it would be referred to as an M1. ANS: T DIF: Moderate NAT: BUSPROG: Communication KEY: Bloom’s Comprehension

32.

Page 24 Monetary Policy

OBJ:

2-2

REF: TOP:

Page 25 Monetary Policy

OBJ:

2-2

REF: TOP:

Page 25 Monetary Policy

OBJ:

2-2

REF: TOP:

Pages 26-27 OBJ: 2-3 Capitalism: The Free Market System

Capitalism places paramount importance on the need for the government to intervene in the economy to ensure a fair and equitable distribution of income. ANS: F DIF: Moderate NAT: BUSPROG: Analytic KEY: Bloom’s Comprehension

37.

REF: TOP:

Capitalism is based on private ownership, economic freedom, and fair competition. ANS: T DIF: Moderate NAT: BUSPROG: Communication KEY: Bloom’s Knowledge

36.

2-2

Monetary Policy is made by the Federal Open Market Committee. ANS: T DIF: Challenging NAT: BUSPROG: Reflective Thinking KEY: Bloom’s Synthesis

35.

OBJ:

The Fed’s decision to buy and sell government securities is decided by the Federal Open Market Committee. ANS: T DIF: Moderate NAT: BUSPROG: Analytic KEY: Bloom’s Analysis

34.

Page 24 Monetary Policy

Ashley has decided to purchase a dress for the banquet using her credit card. Ashley will be using a form of the money supply most often referred to as M2. ANS: F DIF: Moderate NAT: BUSPROG: Communication KEY: Bloom’s Comprehension

33.

REF: TOP:

REF: TOP:

Page 27 OBJ: 2-3 Capitalism: The Free Market System

The fundamental rights of capitalism guarantee that businesses will be profitable and taxes will be low, thus providing a strong motivation to start a business. ANS: F DIF: Moderate NAT: BUSPROG: Communication KEY: Bloom’s Comprehension

REF: TOP:

Page 27 OBJ: 2-3 The Fundamental Rights of Capitalism

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Test Bank for BUSN 5 5th Kelly  

Test Bank BUSN 5 5th Edition Kelly 2013 (Test Bank Download) (9781111826734) (1111826730). Instant access. All chapter are included. All fil...

Test Bank for BUSN 5 5th Kelly  

Test Bank BUSN 5 5th Edition Kelly 2013 (Test Bank Download) (9781111826734) (1111826730). Instant access. All chapter are included. All fil...