Farm Management Exam Questions with Correct Answers| Latest Update
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if the United States enters a trade agreement with country X and as a result country X charges a
lower tariff for imported US pork, what happens to country X's demand for US pork? it
ahofts out and to the right
the degree to which a farms assets adequately secure its debt is referred to as: solvency
what is a loan amortization? Paying off debt with a fixed repayment schedule
what is the difference between local cash price and price of the expiring futures contract?
basis
price that must be paid for options premium
what is interest? The cost of borrowing money
if John wants to know how much money he will have to live on when he retires, what process
will he use to figure out his current investments value at retirement? compounding
if pork and chicken are substitutes and the price of chicken rises, what happens to the demand
of pork? demand for pork increases
the financial ratio that would be best to evaluate a farms ability to cover unexpected
operational expenses is? current ratio
if jacks farm has a working capital value greater than $0, what do we know for certain about its
current ratio? it is greater than one
, what is the length of time for the term on a machinery loan? can be negotiable with the
lender
the current income tax structure is based on a ______ income tax rate schedule progressive
what is a principal the actual amount of money borrowed from the lender
the tax on gasoline is considered a/an excise tax
how many acres are in a section of ground 640
which economic principle states that at some point in time marginal product decreases with
each additional unit of input diminishing physical returns
Evan Farms delivered 48,620 Ibs. of wheat to MidMO Farmers Elevator. How many bushels did
they deliver? 810.3
the deadline for a crop insurance application for corn in a missouri is march 15
a firm should shut down in the short run if it cannot cover its variable costs
how many square feet are in an acre 43,560
what is the managing price or market risk by taking an opposite position in the futures market
from that held in the cash market? hedging
how many acres would be in the parcel of ground with the legal description of NE 1/4, SE 1/4,
S1, T3N, R3n of the 5th P.M? 40
Guaranteed Success
if the United States enters a trade agreement with country X and as a result country X charges a
lower tariff for imported US pork, what happens to country X's demand for US pork? it
ahofts out and to the right
the degree to which a farms assets adequately secure its debt is referred to as: solvency
what is a loan amortization? Paying off debt with a fixed repayment schedule
what is the difference between local cash price and price of the expiring futures contract?
basis
price that must be paid for options premium
what is interest? The cost of borrowing money
if John wants to know how much money he will have to live on when he retires, what process
will he use to figure out his current investments value at retirement? compounding
if pork and chicken are substitutes and the price of chicken rises, what happens to the demand
of pork? demand for pork increases
the financial ratio that would be best to evaluate a farms ability to cover unexpected
operational expenses is? current ratio
if jacks farm has a working capital value greater than $0, what do we know for certain about its
current ratio? it is greater than one
, what is the length of time for the term on a machinery loan? can be negotiable with the
lender
the current income tax structure is based on a ______ income tax rate schedule progressive
what is a principal the actual amount of money borrowed from the lender
the tax on gasoline is considered a/an excise tax
how many acres are in a section of ground 640
which economic principle states that at some point in time marginal product decreases with
each additional unit of input diminishing physical returns
Evan Farms delivered 48,620 Ibs. of wheat to MidMO Farmers Elevator. How many bushels did
they deliver? 810.3
the deadline for a crop insurance application for corn in a missouri is march 15
a firm should shut down in the short run if it cannot cover its variable costs
how many square feet are in an acre 43,560
what is the managing price or market risk by taking an opposite position in the futures market
from that held in the cash market? hedging
how many acres would be in the parcel of ground with the legal description of NE 1/4, SE 1/4,
S1, T3N, R3n of the 5th P.M? 40
