ETS MFT EXAM QUESTIONS AND
ANSWERS
1.,Secondary,data,usually,costs,less,-,ans-
✔✔In,marketing,research,,a,firm,might,consider,using,secondary,data,over,primary,data,b
ecause...
1.,Secondary,data,usually,costs,less
2.,Secondary,data,are,usually,more,accurate
3.,Primary,data,are,usually,non,specific
4.,Primary,data,are,likely,to,be,outdated
1.,Enforcement,of,internal,policies,-,ans-
✔✔In,organizational,decision,making,,managers,are,able,to,exercise,the,greatest,degree,
of,discretion,in,the...
1.,Enforcement,of,internal,policies
2.,Settlement,of,legal,disputes
3.,Restructuring,of,outstanding,loans
4.,Compliance,with,federal,regulations
3.,current,assets,less,short,term,liabilities,-,ans-
✔✔The,term,"net,working,capital",refers,to:
1.,Inventories,,receivables,,and,current,notes,and,investments
2.,Assets,divided,by,liabilities
3.,Current,assets,less,short,term,liabilities
4.,Net,assets,left,over,after,subtracting,cost,of,goods,sold
(fixed,costs,+,target,profit),/,(selling,price,per,unit,-,variable,cost,per,unit),-,ans-
✔✔required,sales,in,units,formula
4.,it,requires,proof,of,a,breach,of,a,statutory,or,common,law,duty,-,ans-
✔✔Which,of,the,following,statements,about,the,tort,of,negligence,is,true?
1.,It,cannot,be,used,as,a,basis,for,liability,for,defensive,products
2.,It,is,a,strict,liability,tort,with,no,defenses
3.,It,requires,proof,of,some,intentional,conduct
,4.,It,requires,proof,of,breach,of,a,statutory,or,common,law,duty
3.,It,documents,the,sequence,of,processing,steps,that,take,place,in,an,information,system,
-,ans-✔✔Which,of,the,following,statements,about,a,systems,flowchart,is,true?
1.,It,is,used,in,systems,design,to,define,and,describe,each,piece,of,data
2.,It,is,a,method,of,writing,programs,using,only,three,basic,constructs:,sequence,,selection
,,and,repetition
3.,It,documents,the,sequence,of,processing,steps,that,take,place,in,an,information,system
4.,It,documents,the,logical,design,of,an,information,system
2.,$5080
-,don't,count,outstanding,checks,
-,don't,count,deposit,that,hasn't,appeared,-,ans-
✔✔On,May,31,,Company,O's,general,ledger,shows,a,cash,balance,of,
$5,123.,The,May,31,bank,statement,shows,a,balance,of,
$4,905.,Other,information,is,available,as,follows:
A,May,31,deposit,of,$300,does,not,appear,on,the,bank,statement;,but,a,
$3,service,charge,does.
A,customer's,$40,insufficient,funds,check,has,been,returned,with,the,bank,statement.
Outstanding,checks,of,$10,,$15,,and,$100,are,identified,on,May
What,is,the,correct,cash,balance,on,May,31?
1.,$4,905
2.,$5,080
3.,$5,166
4.,$5,204
2.,Return,on,the,market,portfolio,-,ans-
✔✔Within,the,context,of,the,capital,asset,pricing,model,
(CAPM),,the,risk,measure,known,as,beta,is,often,computed,by,regressing,the,return,of,the,
company's,stock,against,the:
1.,Return,on,the,company's,bonds
2.,Return,on,the,market,portfolio
3.,Change,in,the,gross,domestic,product
4.,Change,in,the,consumer,price,index
3.,either,job,j,or,job,k,-,ans-
✔✔A,project,consists,of,150,jobs.,The,expected,completion,time,for,each,job,is,given,in,da
ys.,The,project,has,three,critical,paths,with,two,jobs,in,common,,J,and,K.,in,order,to,finish,t
he,project,one,day,early,,the,completion,time,should,be,reduced,one,day,for:
1.,Each,of,the,150,jobs
2.,Each,of,the,jobs,on,the,three,critical,paths
, 3.,Either,job,J,or,job,K
4.,Both,job,J,and,job,K
2.,price,will,increase,but,quantity,is,indeterminate,-,ans-
✔✔The,Organization,of,the,Petroleum,Exporting,Countries,
(OPEC),reduces,production,by,10,percent,,and,the,growth,rate,of,the,world,economy,begi
ns,to,escalate.,How,will,the,simultaneous,occurrence,of,these,events,affect,the,equilibrium
,price,and,quantity,in,the,world,petroleum,market?
1.,Price,will,increase,,but,quantity,will,remain,unchanged
2.,Price,will,increase,,but,quantity,is,indeterminate
3.,Quantity,will,increase,but,price,is,indeterminate
4.,Both,price,and,quantity,will,increase
increase,-,ans-✔✔if,production,decreases,,price,will,______
can't,determine,-,ans-✔✔if,production,decreases,,quantity,is,_______
3.,Employment,in,the,United,States,steel,industry,would,increase.,-,ans-
✔✔Which,of,the,following,would,most,likely,occur,as,a,result,of,the,United,States,governm
ent's,imposing,tariffs,on,foreign,steel,imports?
1.,The,price,of,steel,produced,in,the,United,States,would,decrease.
2.,The,price,of,imported,steel,in,the,United,States,would,decrease.
3.,Employment,in,the,United,States,steel,industry,would,increase.
4.,Government,tax,revenue,would,fall.
increase,,raising,-,ans-
✔✔If,we,can't,import,something,,production,within,the,country,will,_______,leading,to,a,ne
ed,for,more,workers,,________,employment,levels,in,said,industry.
1.,Increase,government,spending,-,ans-
✔✔In,an,economy,the,unemployment,rate,is,10,percent,and,the,inflation,rate,is,1,percent.,
An,appropriate,fiscal,policy,in,this,phase,of,the,business,cycle,would,be,to
1.,Increase,government,spending
2.,Increase,income,taxes
3.,Decrease,transfer,payments
4.,Decrease,the,money,supply
3.,Reducing,the,reserve,requirement,-,ans-
✔✔Which,of,the,following,is,an,appropriate,Federal,Reserve,action,to,stimulate,the,United,
States,economy?
1.,Selling,government,bonds,on,the,open,market
2.,Increasing,the,discount,rate
ANSWERS
1.,Secondary,data,usually,costs,less,-,ans-
✔✔In,marketing,research,,a,firm,might,consider,using,secondary,data,over,primary,data,b
ecause...
1.,Secondary,data,usually,costs,less
2.,Secondary,data,are,usually,more,accurate
3.,Primary,data,are,usually,non,specific
4.,Primary,data,are,likely,to,be,outdated
1.,Enforcement,of,internal,policies,-,ans-
✔✔In,organizational,decision,making,,managers,are,able,to,exercise,the,greatest,degree,
of,discretion,in,the...
1.,Enforcement,of,internal,policies
2.,Settlement,of,legal,disputes
3.,Restructuring,of,outstanding,loans
4.,Compliance,with,federal,regulations
3.,current,assets,less,short,term,liabilities,-,ans-
✔✔The,term,"net,working,capital",refers,to:
1.,Inventories,,receivables,,and,current,notes,and,investments
2.,Assets,divided,by,liabilities
3.,Current,assets,less,short,term,liabilities
4.,Net,assets,left,over,after,subtracting,cost,of,goods,sold
(fixed,costs,+,target,profit),/,(selling,price,per,unit,-,variable,cost,per,unit),-,ans-
✔✔required,sales,in,units,formula
4.,it,requires,proof,of,a,breach,of,a,statutory,or,common,law,duty,-,ans-
✔✔Which,of,the,following,statements,about,the,tort,of,negligence,is,true?
1.,It,cannot,be,used,as,a,basis,for,liability,for,defensive,products
2.,It,is,a,strict,liability,tort,with,no,defenses
3.,It,requires,proof,of,some,intentional,conduct
,4.,It,requires,proof,of,breach,of,a,statutory,or,common,law,duty
3.,It,documents,the,sequence,of,processing,steps,that,take,place,in,an,information,system,
-,ans-✔✔Which,of,the,following,statements,about,a,systems,flowchart,is,true?
1.,It,is,used,in,systems,design,to,define,and,describe,each,piece,of,data
2.,It,is,a,method,of,writing,programs,using,only,three,basic,constructs:,sequence,,selection
,,and,repetition
3.,It,documents,the,sequence,of,processing,steps,that,take,place,in,an,information,system
4.,It,documents,the,logical,design,of,an,information,system
2.,$5080
-,don't,count,outstanding,checks,
-,don't,count,deposit,that,hasn't,appeared,-,ans-
✔✔On,May,31,,Company,O's,general,ledger,shows,a,cash,balance,of,
$5,123.,The,May,31,bank,statement,shows,a,balance,of,
$4,905.,Other,information,is,available,as,follows:
A,May,31,deposit,of,$300,does,not,appear,on,the,bank,statement;,but,a,
$3,service,charge,does.
A,customer's,$40,insufficient,funds,check,has,been,returned,with,the,bank,statement.
Outstanding,checks,of,$10,,$15,,and,$100,are,identified,on,May
What,is,the,correct,cash,balance,on,May,31?
1.,$4,905
2.,$5,080
3.,$5,166
4.,$5,204
2.,Return,on,the,market,portfolio,-,ans-
✔✔Within,the,context,of,the,capital,asset,pricing,model,
(CAPM),,the,risk,measure,known,as,beta,is,often,computed,by,regressing,the,return,of,the,
company's,stock,against,the:
1.,Return,on,the,company's,bonds
2.,Return,on,the,market,portfolio
3.,Change,in,the,gross,domestic,product
4.,Change,in,the,consumer,price,index
3.,either,job,j,or,job,k,-,ans-
✔✔A,project,consists,of,150,jobs.,The,expected,completion,time,for,each,job,is,given,in,da
ys.,The,project,has,three,critical,paths,with,two,jobs,in,common,,J,and,K.,in,order,to,finish,t
he,project,one,day,early,,the,completion,time,should,be,reduced,one,day,for:
1.,Each,of,the,150,jobs
2.,Each,of,the,jobs,on,the,three,critical,paths
, 3.,Either,job,J,or,job,K
4.,Both,job,J,and,job,K
2.,price,will,increase,but,quantity,is,indeterminate,-,ans-
✔✔The,Organization,of,the,Petroleum,Exporting,Countries,
(OPEC),reduces,production,by,10,percent,,and,the,growth,rate,of,the,world,economy,begi
ns,to,escalate.,How,will,the,simultaneous,occurrence,of,these,events,affect,the,equilibrium
,price,and,quantity,in,the,world,petroleum,market?
1.,Price,will,increase,,but,quantity,will,remain,unchanged
2.,Price,will,increase,,but,quantity,is,indeterminate
3.,Quantity,will,increase,but,price,is,indeterminate
4.,Both,price,and,quantity,will,increase
increase,-,ans-✔✔if,production,decreases,,price,will,______
can't,determine,-,ans-✔✔if,production,decreases,,quantity,is,_______
3.,Employment,in,the,United,States,steel,industry,would,increase.,-,ans-
✔✔Which,of,the,following,would,most,likely,occur,as,a,result,of,the,United,States,governm
ent's,imposing,tariffs,on,foreign,steel,imports?
1.,The,price,of,steel,produced,in,the,United,States,would,decrease.
2.,The,price,of,imported,steel,in,the,United,States,would,decrease.
3.,Employment,in,the,United,States,steel,industry,would,increase.
4.,Government,tax,revenue,would,fall.
increase,,raising,-,ans-
✔✔If,we,can't,import,something,,production,within,the,country,will,_______,leading,to,a,ne
ed,for,more,workers,,________,employment,levels,in,said,industry.
1.,Increase,government,spending,-,ans-
✔✔In,an,economy,the,unemployment,rate,is,10,percent,and,the,inflation,rate,is,1,percent.,
An,appropriate,fiscal,policy,in,this,phase,of,the,business,cycle,would,be,to
1.,Increase,government,spending
2.,Increase,income,taxes
3.,Decrease,transfer,payments
4.,Decrease,the,money,supply
3.,Reducing,the,reserve,requirement,-,ans-
✔✔Which,of,the,following,is,an,appropriate,Federal,Reserve,action,to,stimulate,the,United,
States,economy?
1.,Selling,government,bonds,on,the,open,market
2.,Increasing,the,discount,rate
