Review Test Submission: Quiz 3
Instructions This quiz consist of 20 multiple choice questions. The first 10 questions cover the material in Chapter 5. The second 10 questions cover the material in Chapter 6. Be sure you are in the correct Chapter when you take the quiz.

•  Question 1
 The federal government pays for the services it provides primarily through:
  
•  Question 2
 In our financial system, the money multiplier:
 
•  Question 3
 U.S. debt management is generally designed to:
 
•  Question 4
 In fall 2008, the U.S. Congress and President George W. Bush responded to the financial crisis with the passage of the _____________ in early October of that year.
 
•  Question 5
 Who made the following famous statement: “The government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.”
 
•  Question 6
 Budgetary deficits always have the effect of:
 
•  Question 7
 Special Drawing Rights are a form of reserve asset or paper gold created by the:
 
•  Question 8
 The government entity responsible for fiscal policy is:
 
•  Question 9
 The monetary base:
 
•  Question 10
 Bank reserves are increased when the Treasury:

•  Question 11 
 The benefits of specialization of effort among nations depend primarily upon:
 
•  Question 12
 A statement by a bank guaranteeing acceptance and payment of a draft up to a stated amount is called a (n)
 
•  Question 13
 The firm that enters into a futures contract with respect to foreign exchange does so:
 
•  Question 14
 The _______ includes ALL international transactions.
 
•  Question 15 
 The Board of Governors of the Federal Reserve System considers bankers’ acceptances used in international trade to be:
 
•  Question 16
 The manager of the foreign exchange office of a multinational corporation could, in anticipation of a decline in the value of currency of one of its foreign accounts:

•  Question 17
 The traveler’s letter of credit is usually used by:
 
•  Question 18
 An importer will generally try to avoid making payment for a purchase before the goods are actually shipped by:
 
•  Question 19
 In purchasing a claim to foreign exchange:
 
•  Question 20
 A draft that is not accompanied by any special documents and generally used when the exporter has confidence in the importer’s ability to meet the draft when presented is known as: