1.when a country's money supply increases by large amounts,it can expect:

a. increasing inflation

b.Its foreign exchange rate will devalue somewhat

c.Domestic interest rates will fall initially,then possibly rise subsequently

d.All of the above

2. Investment banks purchase new security issues hoping for a profit.this is called:

a.syndicating b. resinsuring c.factoring d. underwriting

3.when analyzing a company's balance sheet , which of the following is NOT considered part of their equity capital?

a.common stock b.retained earnings c. a 20 year bond outstanding d.preferred stock

4.If a borrower borrows short term money, for example under a one year line of credit,but invests the money for long term assets , such as building a new hotel,he/she has:

a.made a mistake b.incurred a mismatch c.made a strategic investment