Two methods of analyzing potential capital investments—payback and accounting rate of return—ignore the time value of money

Which of the following is an example of inside lag in monetary policy?

(A) The U.S. government debates a public works program and chooses not to spend money on new highways and railroads. (B) Members of the Board of Governors refuse to lower the discount rate until several months after a recession has begun. (C) Corporations respond slowly to increases in interest rates by reducing their planned investment for future years. (D) Individual banks ignore a reduction in the required reserve ratio and hold excess reserves.

Under the Securities Exchange Act of 1934, a corporation whose common stock is listed on a national stock exchange

A. Is prohibited from making private placement offerings. B. Must submit Form 10-K to the SEC except in those years in which the corporation has made a public offering. C. Must distribute copies of Form 10-K to its shareholders. D. Is subject to having the registration of its securities suspended or revoked.