BUSI 604 TEST 2 PRACTICE EXAM SOLUTION QUESTIONS AND ANSWERS SOLUTION FOR LIBERTY UNIVERSITY

BUSI 604 TEST 2 PRACTICE EXAM SOLUTION QUESTIONS AND ANSWERS SOLUTION FOR LIBERTY UNIVERSITY • Question 1 2 out of 2 points A ( ) notifies the investor of the price movement of shares he or she holds in the security exchange. Selected Answer: Trade alert • Question 2 2 out of 2 points In the United States, the ( ) is responsible for regulating the growth of the economy. Selected Answer: Federal Reserve Bank • Question 3 2 out of 2 points Eurocurrency and Eurobanks do not necessarily mean the currencies or the banks are European. Selected Answer: Tru e • Question 4 The economies of the world have become highly interdependent because of 2 out of 2 points improvements in communication and transportation technologies and the lowering of barriers to trade. Selected Answer: Tru e • Question 5 2 out of 2 points ( ) essentially decreases a consumer’s purchasing power by making goods and services more expensive. Selected Answer: Inflatio n • Question 6 2 out of 2 points If a currency price is expected to rise in the future, a buyer pays a higher price, which is considered a forward discount. Selected Answer: Fals e • Question 7 2 out of 2 points Speculators buy and sell commodities with the intention of making profits on price differentials across global markets. Selected Answer: Tru e