Weekly Review Quiz As of 2008-08-14 s1

Weekly Review Quiz as of 2009-01-29
Economics: Macro

Lending Drops at Big U.S. Banks
by David Enrich
01/26/2008
http://online.wsj.com/article/SB123293041915314113.html

1. The overall decline in loans by banks is likely ______since in normal times banks ______.

a) understated; buy additional loans on the open market.
* b) understated; sell off loans to investors or financial institutions.
c) overstated; buy additional loans on the open market.
d) overstated; sell off loans to investors or financial institutions.
e) an accurate measure of lending activity; banks tend to underreport lending.

Stimulus Plan Is the Big Hope For Steel Firms
by Mark Gongloff
01/26/2009
http://online.wsj.com/article/SB123292542857713695.html

2. The proposed stimulus is likely to boost steel production because it includes

a) a direct subsidy to steel makers.
b) more money to help car manufacturers.
c) tax breaks for steel makers.
* d) a plan to rebuild roads and bridges.
e) a plan to nationalize the steel industry.

Price Cuts Spur Home Sales
by James R. Hagerty
01/27/2009
http://online.wsj.com/article/SB123298209359015631.html

3. The 6.5% rise in home sales in November was attributed in part to ______

a) unusually warm weather.
b) rising personal income.
c) falling mortgage rates.
d) increased mortgage lending by banks.
* e) strong sales of foreclosed homes.

A New Target for Inflation on Tap at Fed?
by Jeff D. Opdyke
01/28/2009
http://online.wsj.com/article/SB123310002900221893.html

4. The minutes from the Fed's last open market committee meeting

a) indicate that the Fed has reduced its official inflation target.
b) indicate that the Fed has increased its official inflation target.
* c) hinted that the Fed might be edging toward an explicit inflation target.
d) suggested that the Fed will soon abandon its inflation target.
e) made no mention of the Fed's target for inflation.

Chinese Premier Blames Recession on U.S. Actions
by Jason Dean, James T. Areddy and Serena Ng
01/29/2009
http://online.wsj.com/article/SB123302236816918321.html

5. China has been ______U.S. Treasury securities, which has kept interest rates in the U.S. ______and the value of China's currency ______relative to the dollar.

a) selling; low; high
b) selling; high; low
c) buying; high; low
d) buying; low; high
* e) buying; low; low