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NEW QUESTION: 1
Which of the following actions can be expected to result in a decrease in stock and bond prices, all else
equal?
I. The Federal Reserve announces a decrease in the discount rate.
II. Congress votes to decrease payments to Social Security recipients.
III. Congress votes to decrease taxes.
IV. The Federal Reserve announces that it will sell some of the Treasury securities it owns on the open
market.
A. I and III only
B. II and IV only
C. I, II, and III only
D. II and III only
Answer: B
Explanation:
Only Selections II and IV will result in a decrease in stock and bond prices, all else equal. If
Congress votes to decrease payments to Social Security recipients or if the Federal Reserve announces
that it will sell some of the Treasury securities it owns on the open market, a decrease in stock and bond
prices can be expected. A vote by Congress to decrease payments to Social Security recipients results in
a decrease in money supply in our economy. Since interest rates can be thought of as the "price" of
money, a decrease in the money supply will result in higher interest rates, which results in lower prices in
the stock and bond markets. Similarly, if the Federal Reserve sells some of the Treasury securities it owns
on the open market, a decrease in the money supply results, leading to an increase in interest rates and a
decrease in securities' prices. When the Federal Reserve decreases the discount rate and when
Congress decreases taxes, the money supply is increased. The interest rate-the price of
money-subsequently decreases (all else equal), and prices of stocks and bonds increase as a result.

NEW QUESTION: 2
An offense punishable by death or by imprisonment for a term exceeding one year is called:
A. Misdemeanor
B. Misguidance
C. Corruption
D. Felony
Answer: D

NEW QUESTION: 3
Why should CPU consumption above 85% be used to identify bottlenecks?
A. At least 20% of resources should be available at all times
B. XenServer host CPU utilization above 85% causes excessive content switching
C. XenServer host reserves 20% of all CPU for context switching
D. Running XenCenter will consume 20% of all CPU resources
Answer: A