When adjusting for an unpaid expense that has been incurred but not recorded, which of the following occur?

• A.An expense is increased and a liability is increased.
• B.An expense is increased and an asset is decreased.
• C.An expense is increased and a liability is decreased.

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One of the crucial ingredients for an effective central bank to implement inflation targeting is:

• A.Consistency.
• B.Continuity.
• C.Transparency.

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The Dow Jones Industrial Average is an example of

• A.price return index.
• B.total return index.
• C.value return index.

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Grant Parker, a money manager, was promised a gift of significant value from a client contingent on the performance of the coming period. Would Grant be committing an ethical violation if he were to accept?

• A.Yes. Grant should not accept gifts from a client, regardless of value or performance.
• B.No. As long as Grant does not tell his employers of the gift and compromise their integrity, this is not an ethical violation.
• C.No. If Grant secures the permission of his employer and does not act to the detriment of his other clients in pursuit of the gift, this is not an ethical violation.

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If a nation is running a surplus in its current account,

• A.it is running a deficit in its capital/financial account.
• B.it is running a surplus in its capital/financial account.
• C.its net unilateral transfers or net income earned abroad must be negative.

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