ETS MFT Business Exam
ETS MFT BUSINESS EXAM NEWEST 2025 COMPLETE ALL QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A+||BRAND NEW VERSION!!
Within the context of the capital asset pricing model (CAPM), the risk measure known as beta is
often computed by regressing the return of the company's stock against?
a. return on the company's bond
b. return on the marlet portfilio
c. change in GDP (gross domestic product)
d. change in the CPI (consumer price index) - ANSWER-b. Return on the market portfolio
A Project consists of 150 jobs. The expected completion time for each job is given in days. The
project has 3 critical paths with 2 jobs in common, J & K. To finish the project 1 day early, the
completion time should be reduced 1 day for?
a. each of the 150 jobs
b. each of the jobs on the 3 critical paths
c. either job J or K
d. both job J and K - ANSWER-Either Job J or K
The Organization of the Petroleum Exporting Countries (OPEC) reduces production by 10% and
the growth rate of the world economy begins to escalate. How will the simultaneous occurrence
of these events affect the equilibrium price and quantity in the world petroleum market?
a. price will increase, but quantity will remain unchanged
b. price will increase, but quantity in indeterminate
c. quantity will increase, but price is indeterminate
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, ETS MFT Business Exam
d. both price and quantity will increase - ANSWER-b. price will increase, but quantity is
indeterminate
Which of the following would most likely occur as a result of the US government's imposing
tariffs on foreign steel imports?
a. Price of steel produced in the US would decrease
b. Price of imported steel in the US would decrease
c. Employment in the US steel industry would increase
d. Government tax revenue would fall - ANSWER-c. Employment in the US steel industry would
increase
In the economy, the unemployment rate is 10% and the inflation rate is 1%. An appropriate
fiscal policy in this phase of the business cycle would be to?
a. increase government spending
b. increase income taxes
c. decrease transfer payments
d. decrease money supply - ANSWER-a. increase government spending
Which of the following is an appropriate Federal Reserve action to stimulate the US economy?
a. selling government bonds on the open market
b. increasing the discount rate
c. reducing the reserve requirement
d. cutting taxes - ANSWER-c. reducing the reserve requirement
2|Page
, ETS MFT Business Exam
If the spread between the spot and forward exchange rates of two currencies equals the
interest rate difference between the two countries, this phenomenon is referred to as?
a. purchasing-power equality
b. commodity arbitrage
c. currency hedging
d. interest rate parity - ANSWER-d. interest rate parity
A firm that would like to know whether it has enough cash to meet its bills would be most likely
to use which category of financial ratio?
a. liquidity
b. leverage
c. efficiency
d. profitability - ANSWER-a. liquidity
(availability of liquid assets; i.e. cash)
In a period of rising prices, which inventory valuation method would generally yield both the
lowest ending inventory value and net income figure?
a. FIFO (First In, First Out)
b. LIFO (Last In, First Out)
c. Weighted Average
d. Standard Cost - ANSWER-b. LIFO
3|Page
, ETS MFT Business Exam
(method used to account for inventory. cost of the most recent products purchased (or
produced) are the first to be expensed as cost of goods sold (COGS), which means the lower
cost of older products will be reported as inventory)
___________ is an asset-management and valuation method in which assets produced or
acquired first are sold, used, or disposed of first. Also, provides a better indication of the value
of ending inventory (on the balance sheet), but it also increases net income because inventory
that might be several years old is used to value COGS. Increasing net income sounds good, but it
can increase the taxes that a company must pay.
a. FIFO (First In, First Out)
b. LIFO (Last In, First Out)
c. Weighted Average
d. Standard Cost - ANSWER-a. FIFO
____________not a good indicator of ending inventory value because it may understate the
value of inventory. __________ results in lower net income (and taxes) because COGS is higher.
However, there are fewer inventory write-downs under _________ during inflation.
a. FIFO (First In, First Out)
b. LIFO (Last In, First Out)
c. Average Costing/Weighted Average
d. Standard Cost - ANSWER-b. LIFO
________________ assigns a cost to inventory items based on the total cost of goods purchased
or produced in a period divided by the total number of items purchased or produced.
a. FIFO (First In, First Out)
b. LIFO (Last In, First Out)
4|Page
ETS MFT BUSINESS EXAM NEWEST 2025 COMPLETE ALL QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A+||BRAND NEW VERSION!!
Within the context of the capital asset pricing model (CAPM), the risk measure known as beta is
often computed by regressing the return of the company's stock against?
a. return on the company's bond
b. return on the marlet portfilio
c. change in GDP (gross domestic product)
d. change in the CPI (consumer price index) - ANSWER-b. Return on the market portfolio
A Project consists of 150 jobs. The expected completion time for each job is given in days. The
project has 3 critical paths with 2 jobs in common, J & K. To finish the project 1 day early, the
completion time should be reduced 1 day for?
a. each of the 150 jobs
b. each of the jobs on the 3 critical paths
c. either job J or K
d. both job J and K - ANSWER-Either Job J or K
The Organization of the Petroleum Exporting Countries (OPEC) reduces production by 10% and
the growth rate of the world economy begins to escalate. How will the simultaneous occurrence
of these events affect the equilibrium price and quantity in the world petroleum market?
a. price will increase, but quantity will remain unchanged
b. price will increase, but quantity in indeterminate
c. quantity will increase, but price is indeterminate
1|Page
, ETS MFT Business Exam
d. both price and quantity will increase - ANSWER-b. price will increase, but quantity is
indeterminate
Which of the following would most likely occur as a result of the US government's imposing
tariffs on foreign steel imports?
a. Price of steel produced in the US would decrease
b. Price of imported steel in the US would decrease
c. Employment in the US steel industry would increase
d. Government tax revenue would fall - ANSWER-c. Employment in the US steel industry would
increase
In the economy, the unemployment rate is 10% and the inflation rate is 1%. An appropriate
fiscal policy in this phase of the business cycle would be to?
a. increase government spending
b. increase income taxes
c. decrease transfer payments
d. decrease money supply - ANSWER-a. increase government spending
Which of the following is an appropriate Federal Reserve action to stimulate the US economy?
a. selling government bonds on the open market
b. increasing the discount rate
c. reducing the reserve requirement
d. cutting taxes - ANSWER-c. reducing the reserve requirement
2|Page
, ETS MFT Business Exam
If the spread between the spot and forward exchange rates of two currencies equals the
interest rate difference between the two countries, this phenomenon is referred to as?
a. purchasing-power equality
b. commodity arbitrage
c. currency hedging
d. interest rate parity - ANSWER-d. interest rate parity
A firm that would like to know whether it has enough cash to meet its bills would be most likely
to use which category of financial ratio?
a. liquidity
b. leverage
c. efficiency
d. profitability - ANSWER-a. liquidity
(availability of liquid assets; i.e. cash)
In a period of rising prices, which inventory valuation method would generally yield both the
lowest ending inventory value and net income figure?
a. FIFO (First In, First Out)
b. LIFO (Last In, First Out)
c. Weighted Average
d. Standard Cost - ANSWER-b. LIFO
3|Page
, ETS MFT Business Exam
(method used to account for inventory. cost of the most recent products purchased (or
produced) are the first to be expensed as cost of goods sold (COGS), which means the lower
cost of older products will be reported as inventory)
___________ is an asset-management and valuation method in which assets produced or
acquired first are sold, used, or disposed of first. Also, provides a better indication of the value
of ending inventory (on the balance sheet), but it also increases net income because inventory
that might be several years old is used to value COGS. Increasing net income sounds good, but it
can increase the taxes that a company must pay.
a. FIFO (First In, First Out)
b. LIFO (Last In, First Out)
c. Weighted Average
d. Standard Cost - ANSWER-a. FIFO
____________not a good indicator of ending inventory value because it may understate the
value of inventory. __________ results in lower net income (and taxes) because COGS is higher.
However, there are fewer inventory write-downs under _________ during inflation.
a. FIFO (First In, First Out)
b. LIFO (Last In, First Out)
c. Average Costing/Weighted Average
d. Standard Cost - ANSWER-b. LIFO
________________ assigns a cost to inventory items based on the total cost of goods purchased
or produced in a period divided by the total number of items purchased or produced.
a. FIFO (First In, First Out)
b. LIFO (Last In, First Out)
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