In order to avoid the misappropriation of company-owned financial investments, which of the following is the best course of action that can be taken by the management of a company with a large portfolio of financial investments?
A) Require that employees who enter and leave the safekeeping area sign and record in a log the exact reason for their access.
B) Require that one trustworthy and bonded employee be responsible for access to the safekeeping area where securities are kept.
C) Require that employees involved in the safekeeping function maintain a subsidiary control ledger for securities on a current basis.
D) Require that the safekeeping function for securities be assigned to a securities broker who will act as a custodial agent.
Answer: D) Require that the safekeeping function for securities be assigned to a securities broker who will act as a custodial agent.
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Suppose the labor force stays constant, and the working-age population stays constant, but a greater number of persons who were unemployed become employed. The labor force participation rate will
A) increase. B) remain constant. C) decrease. D) not change in a way that can be predicted.
Which of the following statements about the Humphrey-Hawkins Act of 1978 is not true?
a. It is based on neo-Keynesian ideas concerning inflation and employment. b. Its central idea can be depicted in a Phillips curve. c. It views 4 percent as an acceptable and reasonable unemployment rate target. d. It views 7 percent as an acceptable and reasonable inflation rate target. e. It is related to ideas associated with the natural rate of unemployment.
Which of the following statements is true?
A) To a large degree, Keynesians focus on the spending components of total expenditures when they seek to understand what determines GDP; monetarists focus on the money supply and velocity when their objective is the same. B) To a large degree, monetarists focus on the spending components of total expenditures when they seek to understand what determines GDP; Keynesians focus on the money supply and velocity when their objective is the same. C) Both Keynesians and monetarists focus on the spending components of total expenditures when they seek to understand what determines GDP; neither group focuses on the money supply and velocity. D) Neither Keynesians nor monetarists focus on the spending components of total expenditures when they seek to understand what determines GDP; both focus on the money supply and velocity.
Fiscal policy is determined by
A) the Federal Reserve. B) the president and the Federal Reserve. C) Congress and the Federal Reserve. D) Congress and the president.