1. The financial statements that are dated for a time period (rather than a specific time) are the .
A. balance sheet and income statement
B. income statement and statement of cash flows
C. balance sheet and statement of owners' equity
D. all of the above

2. Which of the following is an example of off-balance-sheet financing? ______.
A. Operating lease
B. Debenture bonds
C. Current portion of long-term debt
D. Convertible bonds

3. Borrowers can gain access to the surplus funds of savers ______.
A. by issuing securities to savers
B. through financial intermediaries
C. by purchasing securities such as stocks and bonds
D. all of the above
E. both A and B

4. Which of the following assets are most liquid? ______.
A. High grade corporate bonds
B. Time" deposits
C. Stocks in General Electric Company
D. Passbook savings deposits

5. Secondary markets for securities .
A. deal only in bonds
B. are markets primarily for the initial sale of new issues
C. are markets for trading in outstanding debts and equity claims
D. are also called "investment banks"

6. The concept of ______ is based on the common-sense notion that a dollar paid to you in the future is less valuable to you than a dollar today.
A. future value
B. present value
C. deflation
D. interest

7. Which of the following would not result in a credit entry in the China's balance of payments? .
A. The sale of a piece of furniture to a business firm in Japan
B. Interest and dividends paid on foreign investment in China
C. Interests on a Chinese bank deposit in the United Kingdom
D. An increase in foreign investment in China

8. Futures contracts can be ______.
A. used as protection against large price swings
B. countered by an offsetting purchase or sale
C. participated by hedgers or speculators
D. all of the above

9. Suppose that you own a business and are considering expanding your productive capital through an increase in investment spending. You will invest only if ______.
A. you are able to obtain the necessary funds at a low nominal interest rate
B. the investment does not affect your cost of production
C. the present value of future income exceeds the cost of the investment plus interest on any money that you must borrow
D. you observe that your competitors are expanding their productive capital

10. If Y and V are constant, and M doubles, the quantity equation implies that the price level .
A. more than doubles
B. less than doubles
C. doubles
D. might do any of the above
E. more information is needed