Monitoring and Controlling Projects
Homework Set One
BECO306, FBA Univ of Macau
Prof. X.H. Gu
Note: Write your answers in separate sheets in a neat and clear manner.
This is treated as a take-home, open-book exam that is supposed to be completed independently; so do not discuss answers with your classmates.
Part one: Multiple choice questions
1) Securities are ________ for the person who buys them, but are ________ for the individual or firm that issues them.
A) assets; liabilities
B) liabilities; assets
C) negotiable; nonnegotiable
D) nonnegotiable; negotiable
2) When I purchase ________, I own a portion of a firm and have the right to vote on issues important to the firm and to elect its directors.
A) bonds
B) bills
C) notes
D) stock
3) ________ are short-term loans in which Treasury bills serve as collateral.
A) Repurchase agreements
B) Negotiable certificates of deposit
C) Federal funds
D) U.S. government agency securities
4) An example of economies of scale in the provision of financial services is
A) investing in a diversified collection of assets.
B) providing depositors with a variety of savings certificates.
C) spreading the cost of borrowed funds over many customers.
D) spreading the cost of writing a standardized contract over many borrowers.
5) The purpose of the disclosure requirements of the Securities and Exchange Commission is to A) increase the information available to investors.
B) prevent bank panics.
C) improve monetary control.
D) protect investors against financial losses.
6) The total collection of pieces of property that serve to store value is a person's
A) wealth.
B) income.
C) money.
D) credit.
7) The conversion of a barter economy to one that uses money
A) increases efficiency by reducing the need to exchange goods and services.
B) increases efficiency by reducing the need to specialize.
C) increases efficiency by reducing transactions costs.
D) does not increase economic efficiency.
8) In a barter economy the number of
BECO306, FBA Univ of Macau
Prof. X.H. Gu
Note: Write your answers in separate sheets in a neat and clear manner.
This is treated as a take-home, open-book exam that is supposed to be completed independently; so do not discuss answers with your classmates.
Part one: Multiple choice questions
1) Securities are ________ for the person who buys them, but are ________ for the individual or firm that issues them.
A) assets; liabilities
B) liabilities; assets
C) negotiable; nonnegotiable
D) nonnegotiable; negotiable
2) When I purchase ________, I own a portion of a firm and have the right to vote on issues important to the firm and to elect its directors.
A) bonds
B) bills
C) notes
D) stock
3) ________ are short-term loans in which Treasury bills serve as collateral.
A) Repurchase agreements
B) Negotiable certificates of deposit
C) Federal funds
D) U.S. government agency securities
4) An example of economies of scale in the provision of financial services is
A) investing in a diversified collection of assets.
B) providing depositors with a variety of savings certificates.
C) spreading the cost of borrowed funds over many customers.
D) spreading the cost of writing a standardized contract over many borrowers.
5) The purpose of the disclosure requirements of the Securities and Exchange Commission is to A) increase the information available to investors.
B) prevent bank panics.
C) improve monetary control.
D) protect investors against financial losses.
6) The total collection of pieces of property that serve to store value is a person's
A) wealth.
B) income.
C) money.
D) credit.
7) The conversion of a barter economy to one that uses money
A) increases efficiency by reducing the need to exchange goods and services.
B) increases efficiency by reducing the need to specialize.
C) increases efficiency by reducing transactions costs.
D) does not increase economic efficiency.
8) In a barter economy the number of