The Fed undertakes defensive open-market operations

A. when it wants to change fiscal policy.
B. because of seasonal effects or to offset a temporary change in money demand.
C. to offset a permanent change in money demand.
D. when it wants to change monetary policy.


Answer: B

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Sharon, a salesperson for a greeting card company, is responsible for sales in the northern part of California. Sharon's manager has decided to change Sharon's key account in the territory to a house account. Why would Sharon most likely dislike this decision?

A. Sharon will have to share commissions from the key account with the home office. B. Sharon will lose the commission for the key account. C. Sharon will be demoted from her position in the territory for losing the key account. D. Sharon will have to work from the firm's home office. E. Sharon will have to monitor the key account for less pay than she usually earns.

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What will be an ideal response?

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A soft drink filling machine, when in perfect adjustment, fills the bottles with 12 ounces of soft drink. Any overfilling or underfilling results in the shutdown and readjustment of the machine. To determine whether or not the machine is properly adjusted, the correct set of hypotheses is _____

a. H0: ? < 12 Ha: ? ? 12 b. H0: ? ? 12 Ha: ? > 12 c. H0: ? ? 12 Ha: ? = 12 d. H0: ? = 12 Ha: ? ? 12

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