Accounting Questions

3. a. According to the theory of liquidity preference developed by John Maynard Keynes, what are the 3 main motives for holding money and how are they related to important economic variables? b. How does the theory help explain the downward slope of the aggregate-demand curve?

13. If the consumption function is C=20+0.8Y^D then an increase in disposable income (Y^D) by 100 will result in an increase in consumer expenditure (C) by A. 500. B. 120. C. 100. D. 80.

A buyer and seller enter into a written contract for the sale of a four-bedroom home. If either party defaults under the contract, the other party has how much time to file a lawsuit for specific performance? A) Four years B) Three years C) One year D) Unlimited

Open market operations OA) set interest rates B) mange bank accounts. C) buy and sell Treasuries. D) reserve the right to charge fees.

Pools of loans are originated in the primary market and A) no longer used. B) have no cash flow. C) not FNMA conforming. D) sold into the secondary market.

The purpose of the SAFE Act is to encourage states to establish minimum standards for the licensing and registration of mortgage loan originators and to A) promote a careful response to approaching borrowers. B) provide a safer environment for real estate professionals to work. C) provide more consumer protection and reduce fraud. D) help real estate professionals make more sales.

Mortgage-backed securities (MBS) backed by FHA and VA loans are insured by A) Fannie Mae. B) Ginnie Mae. C) Sallie Mae. D) Freddie Mac.

Primary mortgage markets consist of all of the following EXCEPT A) life insurance companies. B) Fannie Mae C) credit unions. D) private lenders

Suppose you want to have $700,000 for retirement in 35 years. Your account earns 5% interest. Round your answers to the nearest cent. a) How much would you need to deposit in the account each month? b) How much interest will you earn?