Practice Quiz

FSOT: 500 Test Prep Study Questions - Question List

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106. Companies such as Moody's and Standard & Poor's provide the service of:
  1. regulating public companies for the SEC
  2. determining credit ratings for public and private companies
  3. conducting stock transactions for traders
  4. calculating the DOW Jones average daily
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107. The process of paying off a debt over a fixed period of time with specified payments and interest rates is known as:
  1. fiscal policy
  2. appreciation
  3. amortization.
  4. revolving credit
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108. Demand pull inflation refers to a situation in which:
  1. Output greatly exceeds the aggregate demand
  2. Market supply and demand are very close to equilibrium
  3. Output can not keep up with aggregate demand
  4. Supply exceeds market demand
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109. If utility is the measure of satisfaction gained by consuming a good or service,then according to the principle of diminishing marginal utility:
  1. Five doughnuts makes you happier than four, but the fifth doughnut does not make you as happy as the first
  2. Five doughnuts makes you happier than four and the third doughnut makes you happier than the first
  3. Five doughnuts does not make you as happy as four because utility has been maximized
  4. Five doughnuts make you happier than one and each additional doughnut makes you happier than the last
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110. Consumer or investor behavior in which bargains are accepted that are low risk and low potential payoff and bargains are avoided which are higher risk, but potentially higher payoff is known as:
  1. Risk tolerance
  2. Risk aversion
  3. Risk neutral
  4. Risk premium
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