Weekly Review Quiz as of 2010-12-16
Finance
Companies Cling to Cash
by Justin Lahart
12/10/2010
http://online.wsj.com/article/SB10001424052748703766704576009501161973480.html
1. At the end of June, the $1.93 trillion in cash held by nonfinancial companies in the U.S. accounted for 7.4% of the companies’ total assets. How does this percentage compare to past holdings of cash by nonfinancial companies?
a) it is the highest in history
* b) it is the highest since 1959
c) it is the lowest since 1984
d) it is the lowest since 1932
e) it is exactly the historical average over the past 50 years
Germany Vows Defense of Euro
by Marcus Walker and Matthew Karnitschnig
12/11/2010
http://online.wsj.com/article/SB10001424052748703727804576011553442147030.html
2. Which country’s finance minister said his country is prepared to pursue bold action to preserve Europe's common currency, including deeper economic integration with its neighbors, and issued a warning to markets not to underestimate his country’s resolve to protect the euro?
a) France
b) Greece
c) Ireland
d) Norway
* e) German
Commodities' Paths Diverge
by Liam Pleven
12/13/2010
http://online.wsj.com/article/SB10001424052748704058704576015332264106072.html
3. Unlike much of this year, prices for basic crops, fuels and industrial metals have in recent weeks
a) moved inversely with futures prices
b) risen together in anticipation of a global recovery
* c) diverged as markets have been driven by their own supply-demand dynamics
d) moved inversely with commodity ETFs
e) fallen together in anticipation of another global slowdown
Court Strikes at Health Law
by Janet Adamy
12/14/2010
http://online.wsj.com/article/SB10001424052748703727804576017552229615230.html
4. What part of the health-care overhaul did U.S. District Judge Henry E. Hudson rule unconstitutional on Monday?
a) the ban on insurers denying pre-existing conditions
b) the provision that requires doctors to treat people regardless of their ability to pay
c) the tax credits to help lower income individuals buy coverage
* d) the requirement that most American’s carry insurance or pay a penalty
e) all of the above
GM's Drive: Getting Out of Debt
by Sharon Terlep
12/15/2010
http://online.wsj.com/article/SB10001424052748703296604576005702436485320.html
5. What strategy has General Motor’s chief financial officer, Chris Liddell, announced for GM’s capital structure?
a) it plans to maintain enough debt to reduced GM’s tax bill to zero
b) it plans to maintain a times interest earned of at least 2.0 at all times
c) it plans to make whatever changes are required to move GM’s debt rating from junk to investment grade
d) it plans to borrow enough additional funds to fully fund its pension obligations
* e) it plans to pay off virtually all its borrowing in a few years and keep debt at close to nothing