SOLUTION MANUAL For Entrepreneurial Finance, 7th
Edition by J. Chris Leach, Ronald W. Melicher
The supply of money saved includes all of the following EXCEPT - ANSWER: stocks
held for investors by brokerage houses
Jerry Jones has a Visa ® card with the Very Big Interstate Bank. He notices that the
interest rate charged on this card is 19.5% per annum. Jerry has been employed by
the same company for 15 years and has excellent credit. The company has a credit
union that will issue Jerry a Visa ® card with an interest rate of 14.6%. The credit
union offered Jerry this reduced rate because - ANSWER: the unsystematic risk is
lower for credit union members than it is for the general population
Which of the following is included in Gross Income? - ANSWER: All of these
Which of the following is an example of a regressive tax? - ANSWER: sales tax
When the Federal Reserve increases the interest rate it charges banks to borrow
reserves, it is controlling the money supply by using which of the following tools? -
ANSWER: discount rate
Which of the following is an example of a progressive tax? - ANSWER: Both flat tax
and income tax were noted in the text as progressive taxes.
The primary savers of funds in the United States are - ANSWER: households
John Gates made $25,000 last year and paid $2,500 in taxes on this income. Jane
Smith made $30,000 last year and paid $2,700 in taxes on this income. What type of
tax is the government using? - ANSWER: regressive taxes
If the Fed purchases $10,000 in government securities it will have the effect of -
ANSWER: increasing the money supply.
Which of the following is NOT an example of economic capital? - ANSWER: a bond
issued by IBM
Jane just graduated from college with a Bachelor of Science Degree in Computer
Information systems. She received the following job offers. Jones and Associates at a
starting salary of $30,000. Smith Brothers at a starting salary of $33,000. Joan
Cannery Consulting at a starting salary of $35,000. Consultants-R-We at a starting
salary of $32,000. Andrews Computer Vendors at a starting salary of $36,000. If she
takes the job with Jones and Associates, her opportunity cost is - ANSWER: $36,000
, There are several markets in the United States. The market where final goods and
services are exchanged is the - ANSWER: retail market.
Jane just graduated from college with a Bachelor of Science Degree in Computer
Information Systems. She received the following job offers. Jones and Associates at a
starting salary of $30,000. Smith Brothers at a starting salary of $33,000. Joan
Cannery Consulting at a starting salary of $35,000. Consultants-R-We at a starting
salary of $32,000. Andrews Computer Vendors at a starting salary of $36,000. If she
takes the job with Andrews Computer Vendors, her opportunity cost is - ANSWER:
$35,000.
Which of the following is NOT a form of taxes that governments use? - ANSWER:
proposed taxes
The users of funds in the United States are - ANSWER: All of these.
The mental and physical talents of human beings are entrepreneurial resources -
ANSWER: False
The classroom on a college campus is an example of a(n) - ANSWER: capital resource.
When the Federal Reserve notifies banks that they must hold fifteen cents for every
dollar that is deposited, it is controlling the money supply by using which of the
following tools? - ANSWER: reserve requirements ratio
The Federal Reserve is the central bank of the United States - ANSWER: True
The law of demand states that as the price of an item falls, the quantity demanded
will decrease, ceteris paribus - ANSWER: False
The four basic factors that affect the price paid (interest rate) for money are -
ANSWER: the supply of money saved, the demand for borrowed funds, Federal
Reserve policy, and risk.
A person making $90,000 or less pays 6.2% of his salary in Social Security taxes -
ANSWER: True
When the supply of money saved exceeds the demand for money, then banks will -
ANSWER: both lower interest rates to discourage savers and put money on sale by
making loans more attractive
In market transactions, when one party wins, the other usually feels as though he or
she lost - ANSWER: False
Which of the following is NOT an example of economic capital - ANSWER: a bond
issued by IBM
Edition by J. Chris Leach, Ronald W. Melicher
The supply of money saved includes all of the following EXCEPT - ANSWER: stocks
held for investors by brokerage houses
Jerry Jones has a Visa ® card with the Very Big Interstate Bank. He notices that the
interest rate charged on this card is 19.5% per annum. Jerry has been employed by
the same company for 15 years and has excellent credit. The company has a credit
union that will issue Jerry a Visa ® card with an interest rate of 14.6%. The credit
union offered Jerry this reduced rate because - ANSWER: the unsystematic risk is
lower for credit union members than it is for the general population
Which of the following is included in Gross Income? - ANSWER: All of these
Which of the following is an example of a regressive tax? - ANSWER: sales tax
When the Federal Reserve increases the interest rate it charges banks to borrow
reserves, it is controlling the money supply by using which of the following tools? -
ANSWER: discount rate
Which of the following is an example of a progressive tax? - ANSWER: Both flat tax
and income tax were noted in the text as progressive taxes.
The primary savers of funds in the United States are - ANSWER: households
John Gates made $25,000 last year and paid $2,500 in taxes on this income. Jane
Smith made $30,000 last year and paid $2,700 in taxes on this income. What type of
tax is the government using? - ANSWER: regressive taxes
If the Fed purchases $10,000 in government securities it will have the effect of -
ANSWER: increasing the money supply.
Which of the following is NOT an example of economic capital? - ANSWER: a bond
issued by IBM
Jane just graduated from college with a Bachelor of Science Degree in Computer
Information systems. She received the following job offers. Jones and Associates at a
starting salary of $30,000. Smith Brothers at a starting salary of $33,000. Joan
Cannery Consulting at a starting salary of $35,000. Consultants-R-We at a starting
salary of $32,000. Andrews Computer Vendors at a starting salary of $36,000. If she
takes the job with Jones and Associates, her opportunity cost is - ANSWER: $36,000
, There are several markets in the United States. The market where final goods and
services are exchanged is the - ANSWER: retail market.
Jane just graduated from college with a Bachelor of Science Degree in Computer
Information Systems. She received the following job offers. Jones and Associates at a
starting salary of $30,000. Smith Brothers at a starting salary of $33,000. Joan
Cannery Consulting at a starting salary of $35,000. Consultants-R-We at a starting
salary of $32,000. Andrews Computer Vendors at a starting salary of $36,000. If she
takes the job with Andrews Computer Vendors, her opportunity cost is - ANSWER:
$35,000.
Which of the following is NOT a form of taxes that governments use? - ANSWER:
proposed taxes
The users of funds in the United States are - ANSWER: All of these.
The mental and physical talents of human beings are entrepreneurial resources -
ANSWER: False
The classroom on a college campus is an example of a(n) - ANSWER: capital resource.
When the Federal Reserve notifies banks that they must hold fifteen cents for every
dollar that is deposited, it is controlling the money supply by using which of the
following tools? - ANSWER: reserve requirements ratio
The Federal Reserve is the central bank of the United States - ANSWER: True
The law of demand states that as the price of an item falls, the quantity demanded
will decrease, ceteris paribus - ANSWER: False
The four basic factors that affect the price paid (interest rate) for money are -
ANSWER: the supply of money saved, the demand for borrowed funds, Federal
Reserve policy, and risk.
A person making $90,000 or less pays 6.2% of his salary in Social Security taxes -
ANSWER: True
When the supply of money saved exceeds the demand for money, then banks will -
ANSWER: both lower interest rates to discourage savers and put money on sale by
making loans more attractive
In market transactions, when one party wins, the other usually feels as though he or
she lost - ANSWER: False
Which of the following is NOT an example of economic capital - ANSWER: a bond
issued by IBM
