TAMU FINC 341 EXAM 1 GUYTON 2025
QUESTIONS AND ANSWERS
Current head of the federal reserve: - ANS Jay Powell
Current unemployment rate - ANS 3.9%
An inflation rate under ____ means we're ____ - ANS 4%, fully employed
"Loading the gun" means: - ANS the fed bringing interest rates up
"Firing the gun" means: - ANS the fed is bringing interest rates down
The current short term treasury rate is ____ - ANS 1.75%
Recently, the NASDAQ went over ____ - ANS 8000
The number one goal of management is to: - ANS Maximize the company stock price
The current U.S. GDP is: - ANS 4.27%
An inverted yield curve is indicated by: - ANS 1-year treasuries are higher than 10-year
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,Short term are higher than long term investments
When inflation is equal to unemployment: - ANS We typically see a recession
The fed controls what type of interest rates? - ANS 1-year short term rates
The market price of stock is: - ANS what you would pay for a stock in the market right now
The intrinsic value of stock is: - ANS what a stock is worth based on all publicly available
information
The _________ theory states that the stock market always tries to be in ______ meaning stocks
approach _______ - ANS Efficient markets theory
Equillibrium
Their intrinsic value
In a business relationship, stockholders are the _____ and managers are an ______ -
ANS Principle
Agent
_____ is the name of an outspoken stockholder who used direct intervention with the company
_____ - ANS Carl Icahn
Apple
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, ______, or less politically correct, _______ are people who take over companies with high
potential but low performance - ANS Activists
Raiders
Why is _____ sometimes referred to as "Operating Income" - ANS EBIT, because it is the
income the company earns if it didn't have to pay taxes or interest on its debt
Which 2 companies currently have a $1 trillion market share? - ANS Apple and Amazon
What term refers to when your money is worth less, but your taxes continue to get higher? -
ANS Bracket Creep
Trump has recently removed the disadvantageous _____ from the tax code - ANS Marriage
rules
What are the different brackets for taxes on capital gains? - ANS 0% for the first 3 brackets
15% for everything in between
20% for the last possible bracket
Examples of capital assets are____ and is defined as: - ANS Stocks, Bonds, and Real Estate
Things with a useful life of longer than 1 year that are not intended for sale, nor are they
required or aid in normal business operations. They are simply investments.
A tax bracket that has the same tax rate as the average tax rate of the previous brackets is
referred to as a ______ - ANS maintenance bracket
COPYRIGHT © 2025 BRAINBARTER ALL RIGHTS RESERVED 3
QUESTIONS AND ANSWERS
Current head of the federal reserve: - ANS Jay Powell
Current unemployment rate - ANS 3.9%
An inflation rate under ____ means we're ____ - ANS 4%, fully employed
"Loading the gun" means: - ANS the fed bringing interest rates up
"Firing the gun" means: - ANS the fed is bringing interest rates down
The current short term treasury rate is ____ - ANS 1.75%
Recently, the NASDAQ went over ____ - ANS 8000
The number one goal of management is to: - ANS Maximize the company stock price
The current U.S. GDP is: - ANS 4.27%
An inverted yield curve is indicated by: - ANS 1-year treasuries are higher than 10-year
COPYRIGHT © 2025 BRAINBARTER ALL RIGHTS RESERVED 1
,Short term are higher than long term investments
When inflation is equal to unemployment: - ANS We typically see a recession
The fed controls what type of interest rates? - ANS 1-year short term rates
The market price of stock is: - ANS what you would pay for a stock in the market right now
The intrinsic value of stock is: - ANS what a stock is worth based on all publicly available
information
The _________ theory states that the stock market always tries to be in ______ meaning stocks
approach _______ - ANS Efficient markets theory
Equillibrium
Their intrinsic value
In a business relationship, stockholders are the _____ and managers are an ______ -
ANS Principle
Agent
_____ is the name of an outspoken stockholder who used direct intervention with the company
_____ - ANS Carl Icahn
Apple
COPYRIGHT © 2025 BRAINBARTER ALL RIGHTS RESERVED 2
, ______, or less politically correct, _______ are people who take over companies with high
potential but low performance - ANS Activists
Raiders
Why is _____ sometimes referred to as "Operating Income" - ANS EBIT, because it is the
income the company earns if it didn't have to pay taxes or interest on its debt
Which 2 companies currently have a $1 trillion market share? - ANS Apple and Amazon
What term refers to when your money is worth less, but your taxes continue to get higher? -
ANS Bracket Creep
Trump has recently removed the disadvantageous _____ from the tax code - ANS Marriage
rules
What are the different brackets for taxes on capital gains? - ANS 0% for the first 3 brackets
15% for everything in between
20% for the last possible bracket
Examples of capital assets are____ and is defined as: - ANS Stocks, Bonds, and Real Estate
Things with a useful life of longer than 1 year that are not intended for sale, nor are they
required or aid in normal business operations. They are simply investments.
A tax bracket that has the same tax rate as the average tax rate of the previous brackets is
referred to as a ______ - ANS maintenance bracket
COPYRIGHT © 2025 BRAINBARTER ALL RIGHTS RESERVED 3
