11．A currency depreciation on the foreign exchange market will ______．

A．encourage imports to the country whose currency has depreciated

B．discourage imports to the country whose currency has depreciated

C．discourage exports to the country whose currency has depreciated

D．encourage foreign travel by the citizens of the country whose currency has depreciated

12．The difference between fiscal policy and monetary policy is that ______．

A．fiscal policy is macroeconomic policy and monetary policy is microeconomic policy

B．monetary policy is macroeconomic policy and fiscal policy is microeconomic policy

C．fiscal policy involves regulation of natural monopolies and monetary policy involves the provision of public goods

D．monetary policy involves regulation of the money supply and fiscal policy involves government spending and taxing

13．When economists speak of the utility of a certain good， they are referring to ______．

A．the demand for the good

B．the usefulness of the good in consumption

C．the satisfaction gained from consuming the good

D．the rate at which consumers are willing to exchange one good for another

14．How are financial ratios used in decision making？ ______．

A．They remove the uncertainty of the business environment

B．They give clear signals about the appropriate action to take

C．They can help identify the reasons for success and failure in business， but decision making requires information beyond the ratios

D．They aren’t useful because decision making is too complex．

15．A good is called an inferior good if sales ______．

A．are unaffected by income

B．rise as price increases

C．decline as price increases

D．decline as income increases

16．Interest rates are made up of ______．

A．the real rate and the inflation premium

B．the risk－free rate and the period rate

C．the risk premium

D．A and C

E．B and C

17．Most stocks are traded on ______．

A．primary markets

B．secondary markets

C．credit markets

D．capital markets

18．The president or CEO of a corporation reports to ______．

A．the treasurer

B．the CFO

C．the board of directors

D．the shareholders

19．Term structure of interest rates refers to the relationship between ______．

A．interest rates of different terms

B．risky and riskless securities

C．the real rate of return and the inflation premium

D．increase profits

20．The demand deposit expansion multiplier is determined by ______．

A．the amount of excess reserves in the banking system

B．the ratio of bank assets to bank liabilities

C．the prime rate of interest

D．the required reserve ratio