Corporate Finance Multiple Choice. If all questions are answered, and correctly, I will like both this response and will notify the individual who responds via email whenever I post something and continuously like their future solution posts. Once posted, I will leave my email or contact in the chat thereafter for the responder.

7. QE, Quantitative Easing, is considered an unconventional form of monetary policy usually used when: a inflation is very high and standard expansionary monetary policy has become ineffective b. inflation is very low or negative, and standard expansionary monetary policy has become ineffective. c. Economic growth is very high, and standard expansionary monetary policy has become very effective. d. Economic growth and unemployment are not the issues, instcad high inflation is the issue. 8. A central bank implements Quantitative Easing, QE, by a. buying foreign assets from central banks and other foreign, thus raising the value of their currencies and lowering the value of the dollar, while simultaneously decreasing the money supply in the USA. This differs from the more usual policy of buying or selling short-term govemment bonds to keep interbank interest rates at a specified target value. b. Selling financial assets to commercial banks and other financial institutions, thus raising the prices of those financial assets and lowering their yield, while simultaneously decreasing the money supply. This differs from the more usual policy of buying or selling short-term government bonds to keep interbank interest rates at a specified target value. c. buying financial assets from foreign communities, foreign banks and other foreign financial institutions, so as to raise the prices of those financial assets abroad and lowering their yield, while simultaneously encouraging investors in the USA to invest abroad. This differs from the more usual policy of buying or selling short-term government bonds to keep interbank interest rates at a specified target value. d. buying financial assets from commercial banks and other financial institutions, thus raising the prices of those financial assets and lowering their yield, while simultaneously increasing the money supply. This differs from the more usual policy of buying or selling short-term government bonds to keep interbank interest rates at a specified target value. 9. The Federal Reserve Board of Governors are; a. Appointed for one term of fourteen (14) years. b. Appointed for a term of four years, renewable four times. c. Elected for a term of six years with a maximum of three terms. d. Elected every two years. 10. The Federal Reserve Board of Governors are a. Changed each time the President of the USA changes. b. Staggered in their appointment so as to provide continuity in experience and knowledge c. Able to be removed (fired) by the President of the USA. d. Elected by the House of Representatives. 11. The Federal Reserve Board of Governors a. Always has a full complement of governors - no vacancies. b. Often has vacancies (due to resignation, death, etc.) so that Monetary Policy may be determined with fewer members than designed. c. Never has a vacaney since any need is immediately filled by a member of Congress. d. May be removed and replaced with an Executive Action any time the President of the USA desires. 12. The Federal Reserve Board of Governors is comprised of: a Twelve Members: the twelve Federal Reserve Bank Presidents. b. Twenty-four Members: two representatives from each Federal Reserve District. c. Seven Members: appointed by the President of the USA directly to the Board. d. Nine Members: three from the Senate, three from the House of Representative and three from the President's Cabinet staff. 13. The FOMC of the Federal Reserve System is comprised of a. Seven members appointed by the President of the USA and confirmed by Congress. b. Ten members: the seven BOG members, one from the Senate, one from the Ilouse of Representatives, and one from the US Treasury Department c. Twelve members: the seven BOGs and five of the twelve Federal Reserve District Bank Presidents. d. Twenty-four members: two representatives from each Federal Reserve District. 14. The FOMC of the FED is responsible (has the direct authority) for a. Determining the level of required reserves for all financial institutions. b. Determining the level of the Discount Rate used by the individual Federal Reserve District Banks. c. Determining the level of open market operations held to achieve a given monetary policy goal. d. Determining the amount of money issued by the US Treasury. 15. Which of the following is NOT a true statement concerning the operation of the FOMC of the FED: a. Since the BOG and the FRDB Presidents are present and/or voting at the FOMC meetings, all Monetary Policy tools are generally discussed and determined at these meetings. b. The Reserve Requirement is seldom an "active" monetary policy tool-it has only been changed about eleven times in the 100 year history of the FED. c. The Federal Reserve FOMC Policy decisions often consider, or even target, the Federal Funds Rate to achieve Monetary Policy goals. d. The Federal Reserve must receive permission from the US Treasury for all changes to Monetary Policy before implementation (taking action). 16. The FOMC a. Is the major designer of Monetary Policy for the FED. b. Is an advisory panel to the US Treasurer for Monetary Policy. c. Is an advisory panel to the President of the USA for Monetary Policy Is an advisory panel to the Congress of the USA for Monetary Policy. 17. The 12 Regional Federal Reserve District Banks: a. Are owned by the FED (Federal Reserve Bank), so that the FED receives dividends from each District Bank's operations cach year. b. Are owned by the US Treasury, and therefore receives dividends from cach bank each year when there are profits. c. Are owned by Federal Reserve FOMC, by investing up to 3% of their surplus into the system, for which the FOMC pays annual dividends. d. Are mutually owned by the membership banks within their District, and therefore appoint three members to the District Bank's Board of Directors, but have minimal influence over the operation of the District Bank. 18. The 12 Regional Federal Reserve District Banks: a. Each have a Board of Directors of twelve members selected from among active members of the District's community. b. Each have a Board of Directors of six members with three appointed by Congress and three from member banks in the District c. Each have a Board of Directors of nine members, with six elected from among the bank members within the District, but may include three elected from active business leaders from within the District, and three appointed by the BOG of the FED. d. Each have a Board of Directors selected and appointed for twelve years by the Senate of the USA Congress. 19. The 12 Regional Federal Reserve District Banks: a. Have the authority to set their own discount rate at a level and within a range approved by the FOMC. b. Have the authority to set their own discount rate at a level and within a range approved by the FED BOG (Board of Governors). c. Have the authority to set their own discount rate at a level and within a range approved by the US Treasurer. d. Implement the one and only Discount Rate set by the FED BOG - there is only one discount rate. b. The Reserve Requirement is seldom an "active" monetary policy tool-it has only been changed about cleven times in the 100 year history of the FED C. The Federal Reserve FOMC Policy decisions often consider, or even target, the Federal Funds Rate to achieve Monetary Policy goals. d. The Federal Reserve must receive permission from the US Treasury for all changes to Monetary Policy before implementation (taking action). 16. The FOMC a. Is the major designer of Monetary Policy for the FED. b. Is an advisory panel to the US Treasurer for Monetary Policy. c. is an advisory panel to the President of the USA for Monetary Policy 4 Is an advisory panel to the Congress of the USA for Monetary Policy. 17. The 12 Regional Federal Reserve District Banks: a. Are owned by the FED (Federal Reserve Bank), so that the FED receives dividends from each District Bank's operations cach year. b. Are owned by the US Treasury, and therefore receives dividends from cach bank each year when there are profits. c. Are owned by Federal Reserve FOMC, by investing up to 3% of their surplus into the system, for which the FOMC pays annual dividends. d. Are mutually owned by the membership banks within their District, and therefore appoint three members to the District Bank's Board of Directors, but have minimal influence over the operation of the District Bank. 18. The 12 Regional Federal Reserve District Banks: a. Each have a Board of Directors of twelve members selected from among active members of the District's community. b. Each have a Board of Directors of six members with three appointed by Congress and three from member banks in the District. c. Each have a Board of Directors of nine members, with six elected from among the bank members within the District, but may include three elected from active business leaders from within the District, and three appointed by the BOG of the FED. d. Each have a Board of Directors selected and appointed for twelve years by the Senate of the USA Congress. 19. The 12 Regional Federal Reserve District Banks: a. Have the authority to set their own discount rate at a level and within a range approved by the FOMC. b. llave the authority to set their own discount rate at a level and within a range approved by the FED BOG (Board of Governors). c. Have the authority to set their own discount rate at a level and within a range approved by the US Treasurer. d. Implement the one and only Discount Rate set by the FED BOG-there is only one discount rate. 20. Which of the following is NOT a true statement concerning the 12 Regional Federal Reserve District Banks (FRDB): a. Each FRDB sends two members of their research team to the FOMC meetings to represent and explain the interest of the District: these twenty- four members comprise the FAC (Federal Advisory Committee). b. All twelve of the FRDB Presidents sit as voting members on the FOMC. c. Although all twelve FRDB President may attend, participate and/or speak at the FOMC meetings, only five of these Presidents may vote. d. The semi-independence of the individual twelve District Banks allows for a decentralized operation to enable local responses to district issues. 21. Growth in mortgage activity and the largest segment of the Mortgage market is: a. home or residential c. commercial b. six-family or larger multifamily dwellings d. farm mortgages 22. Securitization of Mortgages means: 1. The sale and resale of mortgages to private, individual investors. b. The listing of Mortgages on the New York Stock Exchange. c. The sale of a package of mortgages by the issuer to another financial institution, which then create (write) claims against the cash flow anticipated from the mortgages that are sold to the investing public. d. You, the borrower asking for a mortgage, must provide security against the loan. 23. MBS represents a. a type of asset-backed security (an instrument, which is secured by a mortgage or collection of mortgages b. lenders selling short-term assets which are then changed into long-term investments. c. A license to sell houses, buildings, and even farms. d. Mortgage Benevolent Services provides insurance to those who wish to buy but do not have the collateral, liquidity or income to qualify. 24. Which of the following is not truc concerning Mortgages in the USA: a. Mortgages are callable. b. Mortgages are liens. c. Mortgages may require PMI (private mortgage insurance) d. The most popular (and) safest mortgage is a conventional mortgage