1. The Federal Reserve System's primary objectives are to promote full employment, stability in prices, and growth in the economy. If, in pursuit of these objectives, the Federal Reserve lowers the federal funds rate:
It is seeking to inject liquidity into the banking system
It is seeking to drain liquidity from the banking system
It is seeking to reduce irrational exuberance in the stock market
It is encouraging banking institutions to curb their lending
It is signaling that the unemployment rate will likely increase.
2. The minimum level of ongoing inventory and receivables that is required by the firm's operations is referred to as ____________current assets
1. Transitory
2. Fixed
3. Temporary
4. Permanent