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1 Normal UlaD Title 1 No Spac... Heading 1 Heading 2 Replace Select Create and Share Adobe PDF Adobe Acr Styles Editing 75. Suppose a company retains income and holds the money in cash (earning OX). What happens to earnings-per-share next year if all else remains the same? a) falls b) rises c) stays the same 76. If actual GDP is growing more rapidly than Potential GDP, then a) The GDP Gap is becoming wider and the unemployment rate is probably increasing b) The GDP Gap is becoming wider and the unemployment rate is probably decreasing c) The GDP Gapis becoming narrower and the unemployment rate is probably increasing d) The GDP Gag is becoming narrower and the unemployment rate is probably decreasing 77. Which of the following issue(s) Treasury bonds? a) The United States Treasury b) The Federal Reserve c) Both d) Neither 78. A Eurodollar deposit is: a) a deposit denominated in euros at a US bank b) a deposit denominated in dollars at a bank "outside the US c) a deposit denominated in dollars in the US by a European company d) an agreement to exchange euros for dollars at a specific exchange rate e) a deposit issued by banks in order to make loans to Europeans 79. All else the same, a higher profit margin increases: a) profits b) profits taxes c) return on equity d) all the above e) none of the above profits: 80. For a fixed amount of owners' equity, higher ROE produces al more b) less c) same 81. As the company's Treasurer, you have been instructed to avoid reducing cash from the balance sheet. Which of the following situations would therefore, cause you to draw on your company's credit line? a) expenses exceed revenue for the year b) revenue exceeds expenses but the operations people purchased new equipment, the cost of which is greater than that excess c) the company's policy is to maintain its dividend which, this year, exceeds profits d) all of these Focus

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