Question 1

The most important function of the Federal Reserve System is carrying out ____ policy.

1. fiscal
2. monetary
3. tax
4. spending
5. inflationary

Question 2

Lancer Wholesale Company wants to improve cash flow. Which of the following strategies would be most likely to help Lancer achieve this objective?

1. Relaxing its credit policy for new customers
2. Offering cash discounts to buyers who pay their accounts promptly
3. Accepting IOUs from customers who buy in large quantities
4. Offering extended payment plans to qualified buyers

Question 3

The issuance of bonds is a type of debt financing.

True

False

Question 4

The term ________ refers to investors who anticipate increases in stock prices.

1. bears
2. dogs
3. lions
4. bulls