Question & Answer

The Fed intervened heavily during the 2008 credit crisis. Write a short essay explaining whether you believe the Fed’s intervention improved conditions in financial markets or made conditions worse.

When the Fed lowers the federal funds rate target, will the cost of capital of U.S. companies be reduced? Explain how the segmented markets theory regarding the term structure of interest rates (as explained in Chapter 3) could influence the degree to which the Fed’s monetary policy affects long-term interest rates. (LO2)

How would you interpret a large increase in the CBOE volatility index (VIX)? Explain why the VIX increased substantially during the Covid-19 pandemic in 2020. (LO5)

What is the difference between a live center and a dead center, when these terms are used in the context of workholding in a lathe?

What is the name of the process most commonly used to grow single crystal ingots of silicon for semiconductor processing?

During the coronavirus pandemic, between 2020 and 2022, the Fed implemented two different monetary policies. Explain the circumstances that led the Fed to change the monetary policy. (LO2; LO3)

1.    : Consider the six characteristics of entrepreneurs described in this chapter. Which two traits do you think are most like those of managers in large companies? Which two are least like those of managers in large companies?

The surface finish specification in a turning job is 0.8 µm. The work material is cast iron. Cutting speed = 75 m/min, feed = 0.3 mm/rev, and depth of cut = 4.0 mm. The nose radius of the cutting tool must be selected. Determine the minimum nose radius that will obtain the specified finish in this operation.

1.   Call the local environmental advocacy group and get the group to stage a protest of the company.

For purposes of the deduction for qualified business income, what is a specified service trade or business and why is it important?

Explain the incentive for private equity funds to invest in a firm and improve its operations. (LO1)

Describe the Danner process.

Markus Company purchases supplies from France once a year. Would Markus be favorably affected if it establishes a currency swap arrangement and the dollar strengthens? What if it establishes a currency swap arrangement and the dollar weakens? (LO8)

Paladin Inc. reported taxable income of $1,000,000 this year and paid federal

1.    : Should a multinational organization operate as a tightly integrated, worldwide business system, or would it be more effective to let each national subsidiary operate autonomously? Why?

Explain why a credit crisis in one country may be transmitted to other countries. (LO5)

Why is it desirable to use energy sources for welding that have high heat densities?

Melinda invests $200,000 in a City of Heflin bond that pays 6 percent interest.  Alternatively, Melinda could have invested the $200,000 in a bond recently issued by Surething Inc. that pays 8 percent interest and has risk and other nontax characteristics similar to the City of Heflin bond.  Assume Melinda’s marginal tax rate is 25 percent.

Winkin, Blinkin, and Nod are equal shareholders in SleepEZ, an S corporation. In the conditions listed below, how much income should each report from SleepEZ for 2025 under both the daily allocation and the specific identification allocation methods?  Refer to the following table for the timing of SleepEZ’s income.   Period Income January 1 through March 15 (74 days) $125,000 March 16 through December 31 (291 days) 345,500 January 1 through December 31, 2025 (365 days) $470,500

During some crises, investors shift their funds out of the stock market and into money market securities for safety, even if they do not fear that interest rates will rise. Explain how and why these actions by investors affect the yield curve. Is the shift best explained by expectations theory, liquidity premium theory, or segmented markets theory? (LO3)

What is graphite?

Explain how the prices of bonds were affected by a change in the risk-free rate during the Covid-19 pandemic that began in 2020. Explain how bond prices were affected by a change in the credit risk premium during this period. (LO2)

A blow-molding operation is used to produce a bottle with a diameter of 2.250 in and a wall thickness of 0.045 in. The parison has a thickness of 0.290 in. The observed die swell ratio is 1.30. (a) What is the required diameter of the parison? (b) What is the diameter of the die?

What is the function of a mutual fund? Why are mutual funds popular among investors? How does a money market mutual fund differ from a stock or bond mutual fund? (LO3)

A welding operation on an aluminum alloy makes a groove weld. The cross-sectional area of the weld is 30.0 mm2. The welding velocity is 4.0 mm/sec. The heat transfer factor is 0.92 and the melting factor is 0.48. The melting temperature of the aluminum alloy is 650°C. Determine the rate of heat generation required at the welding source to accomplish this weld.