Farm Management Exam: MCQ Quiz!
(195).jpg "Farm Management Exam: MCQ Quiz!")
.
- 1.The difference between the local cash market and the futures market is called the
- A.
Average
- B.
Basis
- C.
Contract
- D.
Deduction
- E.
None of the above
- 2.Which of the following land characteristics is used to determine an agricultural land's value for Missouri property tax calculations?
- A.
The slope of the land
- B.
The erosion of potential land
- C.
The color of the soil
- D.
The productivity potential of the land
- E.
All of the above
- 3.How many square feet are in an acre?
- A.
5,280
- B.
12,250
- C.
43,560
- D.
100,000
- E.
None of the above
- 4.A firm should shut down in the short-run if it can not cover its
- A.
Fixed cost
- B.
Total cost
- C.
Variable cost
- D.
Time cost
- E.
Overhead costs
- 5.When an increase in production of one enterprise causes a reduction in the production of another enterprise, the two enterprises are said to be:
- A.
Independent
- B.
Complementary
- C.
Supplementary
- D.
Competitive
- E.
None of the above
- 6.Missouri agricultural land productivity values are set by:
- A.
An average of current agricultural land sales
- B.
Using the values set at the federal level
- C.
Using 83.3% of Iowa's values
- D.
The Missouri State Tax Commission
- E.
None of the above
- 7.How many bushels are in a corn futures contract?
- A.
1,000
- B.
3,000
- C.
5,000
- D.
7,000
- E.
None of the above
- 8.The money on deposit to ensure the performance of a futures contract is called
- A.
Basis
- B.
Commission
- C.
Margin
- D.
Premium
- E.
None of the above
- 9.The demand curve shows the relationship between:
- A.
Consumer tastes and quantity demand
- B.
Price in the quantity demand
- C.
Price in production cost
- D.
Money income and quantity demand
- E.
None of the above
- 10.A farmer has total assets of $400,000 of which land is $300,000. The farmer's debt: equity ratio is 3:1. What will the farmer's debt: equity ratio be if his land goes up in value by 15%?
- A.
0.75
- B.
0.92
- C.
1.18
- D.
2.07
- E.
2.45
- 11.The process of finding the future value of a present sum is called:
- A.
Amortizing
- B.
Budgeting
- C.
Compounding
- D.
Discounting
- E.
None of the above
- 12.John invested $4,000 of retirement savings in a load mutual fund. The expected annual rate of return is 6%. How many years will it take for the $4,000 to double? Utilize the Rule of 72 when calculating the answer.
- A.
3
- B.
6
- C.
9
- D.
12
- E.
None of the above
- 13.An upward trend of market prices is referred to as a
- A.
Bear market
- B.
Bull market
- C.
Boar market
- D.
Buck market
- E.
None of the above
- 14.Farmer Smith has a debt-to-asset ratio of 55%. His debt-to-equity ratio must be
- A.
Negative
- B.
45%
- C.
Less than 100%
- D.
Less than 25%
- E.
Greater than 100%
- 15.Which of the following would cause an increase in the price of an agricultural commodity?
- A.
An increase in supply and a decrease in demand
- B.
A decrease in supply with no change in demand
- C.
A decrease in demand with no change in supply
- D.
All of the above would cause price to increase
- E.
None of the above
- 16.The selling of a commodity futures contract to protect a producer from price fluctuations in the market place at the time the product is sold is called:
- A.
Hedging
- B.
Hedger to arrive
- C.
Intrinsic value
- D.
Put option
- E.
None of the above
- 17.In Missouri which of the following is not taxed as personal property:
- A.
Calves between 300-600 pounds
- B.
Sows
- C.
Grain stored on farm premises
- D.
Horses
- E.
None of the above
- 18.The best indication that a farmer is making financial progress year-to-year is
- A.
An increase in net worth on the balance sheet
- B.
A decrease in the value of total liabilities on the balance sheet
- C.
An increase in the value of total assets on the balance sheet
- D.
An increase of total cash flow on the cash flow statement
- E.
A decrease in the value of his non-current liabilities
- 19.The ability of larger firms to be more profitable than smaller firms in the same industry is an example of:
- A.
Diminishing returns
- B.
Imperfect competition
- C.
Inelastic supply
- D.
Economies of scale
- E.
None of the above
- 20.The person who makes transactions for farmers hedging is
- A.
An accountant
- B.
A broker
- C.
A banker
- D.
A commissioner
- E.
None of the above
- 21.The best measure of a firm's ability to make a short-term loan payment is
- A.
Debt/asset ratio
- B.
Current ratio
- C.
Solvency ratio
- D.
Leverage ratio
- E.
Net capital ratio
- 22.If the price of a commodity increases by 5% and the quantity purchased decreases by 10%, then the demand for this commodity is:
- A.
Upward sloping
- B.
Inelastic
- C.
Elastic
- D.
Unitary
- E.
Unstable
- 23.To provide protection against wind damage to the farm home, a person should purchase
- A.
Life insurance
- B.
Property insurance
- C.
Accident and health insurance
- D.
Liability insurance
- E.
None of the above
- 24.To purchase insurance, a person pays a/an
- A.
Deductible
- B.
Indemnity
- C.
Loss
- D.
Premium
- E.
None of the above
- 25.The _________ tax is often referred to as the "death tax".
- A.
Excise
- B.
Medicare
- C.
Estate
- D.
Property
- E.
None of the above
Questions: 10 | Attempts: 1165 | Last updated: Apr 1, 2021
-
Sample QuestionOpportunities for economic advancement of the masses is encouraged.
Questions: 18 | Attempts: 1143 | Last updated: Feb 24, 2021
-
Sample QuestionCan you put citrus in compost bins?
Questions: 8 | Attempts: 649 | Last updated: Jun 17, 2020
-
Sample QuestionThis national organization is holding a series of listening sessions and workshops focused on helping farmers mitigate climate change through the adoption of improved farming practices.
Back to top