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红河学院《宏观经济学》复习指南

b. percentage of shares outstanding traded.

c. number of shares traded times the price they sold at.

d. number of shares of a company traded divided by the shares of all companies traded.

26．Profits not paid out to stockholders are

a. retained earnings. b. known as dividends.

c. the denominator in the price-earnings ratio. d. All of the above are correct.

27．Mount Adams Jazz Corporation has a price of $50, a dividend of $0.60, and retained earnings of $1.00 per share. The

dividend yield on this stock is

a. 3.2 percent. b. 2 percent. c. 1.2 percent. d. .8 percent.

28．Queen City Sausage stock is selling at $40 per share, it has retained earnings of $2.00 per share and dividends of $.50

per share. What is the price-earnings ratio and what is the dividend yield?

a. 20, 1.25 percent b. 20, 6.25 percent c. 16, 1.25 percent

d. None of the above are correct.

29．Buskins Corporation has issued 2 million shares of stocks. Their earnings were $10 million dollars of which they

retained $6 million. What was the dividend per share?

a. $2. b. $3. c. $5

d. None of the above are correct.

30．A high price-earnings ratio indicates that either the stock is

a. undervalued or people have become more optimistic about the corporation's prospects. b. overvalued or people have become more optimistic about the corporation's prospects. c. overvalued or people have become less optimistic about the corporation's prospects. d. undervalued or people have become less optimistic about the corporation's prospects.

31．PacknCamp Corporation has a price of $50, has issued 2,000,000 shares of stock, has retained earnings of $2 million

dollars, and a dividend yield of 2 percent. The price-earnings ratio of PacknCamp is

a. 50, which is high compared to historical standards of the market.

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红河学院《宏观经济学》复习指南

b. 50, which is low compared to historical standards of the market. c. 25, which is low compared to historical standards of the market. d. 25, which is high compared to historical standards of the market.

32．A low P/E for a stock indicates that

a. people may expect earnings to fall in the future perhaps because the firm will be faced with increased

competition.

b. its dividends have been low so that no one is willing to pay very much for it. c. the corporation is possibly overvalued. d. All of the above are correct.

33．Use the following table to answer the following question.

Stock GenMills Gillette Graco Hershey Sym GIS G GGG HSY Yld % 2.5 2.2 1.2 2.1 PE 35 31 16 38 Vol 100s 13758 30428 705 5418 Hi 44.3 31.1 24.2 63.4 Lo 43.5 29.7 23.1 61.7 Close 43.97 30 23.95 62.45 Net Chg -0.63 0.17 -0.53 0.72 In dollar terms, which company paid the highest dividend per share?

a. GenMills b. Gillette c. Graco d. Hershey

34．Financial intermediaries are

a. the same as financial markets.

b. individuals who make a profits by buying a stock low and selling it high.

c. a more general name for financial assets such as stocks, bonds, and checking accounts. d. financial institutions through which savers can indirectly provide funds to borrowers.

35．Which of the following is correct?

a. A large, well-known corporation like Proctor and Gamble typically uses financial intermediation to finance

expansion of its factories.

b. On average, indexed funds outperform managed funds.

c. Unlike corporate bonds and stocks, checking accounts are a store of value.

d. Financial intermediaries are institutions through which savers can directly provide funds to borrowers.

36．Which of the following is both a store of value and a common medium of exchange?

a. corporate bonds b. mutual funds

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红河学院《宏观经济学》复习指南

c. checking account balances d. All of the above are correct.

37．As a money management fee, mutual funds usually charge their customers

a. between 0.5 and 2.0 percent of assets each year. b. between 1.5 and 3.0 percent of assets each year.

c. nothing, because they receive commissions from the firms whose stock they buy. d. a flat fee of about $50.

38．It is claimed that a secondary advantage of mutual funds is that

a. an investor can avoid investment charges and fees.

b. they give ordinary people access to loanable funds for investing. c. they usually outperform stock market indexes.

d. they give ordinary people access to the skills of professional money managers.

39．A closed economy does not

a. trade with other economies. b. have free markets. c. allow immigration. d. All of the above are correct.

40．A closed economy does not

a. trade with other economies. b. have free markets. c. allow immigration. d. All of the above are correct.

41．Which of the following equations will always represent GDP in an open economy?

a. S = I - G b. I = Y - C + G c. Y = C + I + G d. Y = C + I + G + NX

42．Which of the following equations most simply represents GDP in a closed economy?

a. Y = C + I + G + NX b. S = I - G c. I = Y - C + G d. Y = C + I + G

43．Which of the following equations represents national saving in a closed economy?

a. Y - I - G - NX

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红河学院《宏观经济学》复习指南

b. Y - C - G c. Y - I - C d. G + C - Y

44．In a closed economy, national saving equals

a. investment.

b. income minus the sum of consumption and government expenditures. c. private saving plus public saving. d. All of the above are correct.

45．In a closed economy, what remains after paying for consumption and government purchases is

a. national disposable income. b. national saving. c. public saving. d. private saving.

46．Suppose that in a closed economy GDP is equal to 10,000, Taxes are equal to 1,500, Consumption equals 6,500, and

Government expenditures equal 2,000. What is national saving?

a. -500 b. 0 c. 1500

d. None of the above are correct.

47．Suppose that in a closed economy GDP is 10,000, consumption is 6,500, and taxes are 2,000. What value of

Government expenditures would make national savings equal to 1000 and at that value would the government have a deficit or surplus?

a. 2,500 deficit b. 2,500 surplus c. 1,000 deficit d. 1,000 surplus

48．Suppose that consumption is 6,500, taxes are 1,500, and government expenditures are 2,000. If national savings are

1,000 and the economy is closed what is GDP?

a. 9,500 b. 10,000 c. 10,500

d. None of the above are correct.

49．The country of Nemedia does not trade with any other country. Its GDP is $20 billion. Its government collects $4

billion in taxes and pays out $3 billion to households in the form of transfer payments. Consumption equals $15

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