Questions from Financial Markets


Q: 1. What does EBIT/eps analysis indicate? a

1. What does EBIT/eps analysis indicate? a. It shows the relationship between EBIT and eps. b. It is a profitability ratio. c. It is a capital structure ratio. d. It can be used to compare the risk an...

See Answer

Q: 1. What is usually the largest category of bank assets?

1. What is usually the largest category of bank assets? a. Cash and balances due from depository institutions b. Securities c. Loans d. Other assets 2. What is usually the largest category of ba...

See Answer

Q: 1. What are the effects of financial leverage on earnings per

1. What are the effects of financial leverage on earnings per share? a. A higher degree of financial leverage increases earnings per share. b. A higher degree of financial leverage does not affect ear...

See Answer

Q: 1. All else the same, as a firm’s use of

1. All else the same, as a firm’s use of nondebt tax shields rises, the firm’s use of debt will most likely do which of the following? a. Decline b. Not change c. Rise d. Theory doesn’t give us any gu...

See Answer

Q: Describe the weaknesses of the national banking system that was in place

Describe the weaknesses of the national banking system that was in place prior to passage of the Federal Reserve Act of 1913.

See Answer

Q: What functions and activities do central banks usually perform?

What functions and activities do central banks usually perform?

See Answer

Q: Describe the organizational structure of the Federal Reserve System in terms of

Describe the organizational structure of the Federal Reserve System in terms of its five major components.

See Answer

Q: Explain how the banking interests and large, medium, and small

Explain how the banking interests and large, medium, and small businesses are represented on the board of directors of each Reserve Bank.

See Answer

Q: What is a Reserve Branch Bank? How many such branches exist

What is a Reserve Branch Bank? How many such branches exist, and where are most of them located?

See Answer

Q: How are members of the Board of Governors of the Federal Reserve

How are members of the Board of Governors of the Federal Reserve System appointed? To what extent are they subject to political pressures?

See Answer