TAMU FINC 341 EXAM 1 GUYTON ACTUAL EXAM WITH
WELL STRUCTURED QUESTIONS & CORRECT
REVISED ANSWERS A+ ACED
Current head of the federal reserve: - CORRECT ANSWER >>>Jay Powell
Current unemployment rate - CORRECT ANSWER >>>3.9%
An inflation rate under ____ means we're ____ - CORRECT ANSWER >>>4%, fully employed
"Loading the gun" means: - CORRECT ANSWER >>>the fed bringing interest rates up
"Firing the gun" means: - CORRECT ANSWER >>>the fed is bringing interest rates down
The current short term treasury rate is ____ - CORRECT ANSWER >>>1.75%
Recently, the NASDAQ went over ____ - CORRECT ANSWER >>>8000
The number one goal of management is to: - CORRECT ANSWER >>>Maximize the company
stock price
The current U.S. GDP is: - CORRECT ANSWER >>>4.27%
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,An inverted yield curve is indicated by: - CORRECT ANSWER >>>1-year treasuries are higher
than 10-year
Short term are higher than long term investments
When inflation is equal to unemployment: - CORRECT ANSWER >>>We typically see a
recession
The fed controls what type of interest rates? - CORRECT ANSWER >>>1-year short term
rates
The market price of stock is: - CORRECT ANSWER >>>what you would pay for a stock in the
market right now
The intrinsic value of stock is: - CORRECT ANSWER >>>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 _______ - CORRECT ANSWER >>>Efficient markets theory
Equillibrium
Their intrinsic value
In a business relationship, stockholders are the _____ and managers are an ______ -
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, CORRECT ANSWER >>>Principle
Agent
_____ is the name of an outspoken stockholder who used direct intervention with the company
_____ - CORRECT ANSWER >>>Carl Icahn
Apple
______, or less politically correct, _______ are people who take over companies with high
potential but low performance - CORRECT ANSWER >>>Activists
Raiders
Why is _____ sometimes referred to as "Operating Income" - CORRECT ANSWER >>>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? - CORRECT ANSWER
>>>Apple and Amazon
What term refers to when your money is worth less, but your taxes continue to get higher? -
CORRECT ANSWER >>>Bracket Creep
Trump has recently removed the disadvantageous _____ from the tax code - CORRECT
ANSWER >>>Marriage rules
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WELL STRUCTURED QUESTIONS & CORRECT
REVISED ANSWERS A+ ACED
Current head of the federal reserve: - CORRECT ANSWER >>>Jay Powell
Current unemployment rate - CORRECT ANSWER >>>3.9%
An inflation rate under ____ means we're ____ - CORRECT ANSWER >>>4%, fully employed
"Loading the gun" means: - CORRECT ANSWER >>>the fed bringing interest rates up
"Firing the gun" means: - CORRECT ANSWER >>>the fed is bringing interest rates down
The current short term treasury rate is ____ - CORRECT ANSWER >>>1.75%
Recently, the NASDAQ went over ____ - CORRECT ANSWER >>>8000
The number one goal of management is to: - CORRECT ANSWER >>>Maximize the company
stock price
The current U.S. GDP is: - CORRECT ANSWER >>>4.27%
1|Page
,An inverted yield curve is indicated by: - CORRECT ANSWER >>>1-year treasuries are higher
than 10-year
Short term are higher than long term investments
When inflation is equal to unemployment: - CORRECT ANSWER >>>We typically see a
recession
The fed controls what type of interest rates? - CORRECT ANSWER >>>1-year short term
rates
The market price of stock is: - CORRECT ANSWER >>>what you would pay for a stock in the
market right now
The intrinsic value of stock is: - CORRECT ANSWER >>>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 _______ - CORRECT ANSWER >>>Efficient markets theory
Equillibrium
Their intrinsic value
In a business relationship, stockholders are the _____ and managers are an ______ -
2|Page
, CORRECT ANSWER >>>Principle
Agent
_____ is the name of an outspoken stockholder who used direct intervention with the company
_____ - CORRECT ANSWER >>>Carl Icahn
Apple
______, or less politically correct, _______ are people who take over companies with high
potential but low performance - CORRECT ANSWER >>>Activists
Raiders
Why is _____ sometimes referred to as "Operating Income" - CORRECT ANSWER >>>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? - CORRECT ANSWER
>>>Apple and Amazon
What term refers to when your money is worth less, but your taxes continue to get higher? -
CORRECT ANSWER >>>Bracket Creep
Trump has recently removed the disadvantageous _____ from the tax code - CORRECT
ANSWER >>>Marriage rules
3|Page
