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PRAXIS Praxis Business Education: Content Knowledge (5101)Exam Sample Questions:

1. Research indicates that government warnings can affect buying patterns. A recent federal research report links red-meat consumption to poor health. Another report praises chicken as a healthy meat alternative. If other market conditions remain the same, the price of chicken will probably

A) decrease
B) remain unchanged
C) rise, then fall
D) increase

2. Which of the following types of statements is referred to as a picture of a company in the future?

A) Vision statement
B) Value statement
C) Closing statement
D) Mission statement

3. The Federal Reserve Bank can increase the rate of growth of the money supply primarily by

A) raising the reserve requirement
B) buying government securities on the open market
C) raising the discount rate
D) selling government securities in the open market

4. Which of the following is a primary purpose of financial markets?

A) Increasing the price of common stock
B) Lowering the yield on bonds
C) Allocating capital efficiently
D) Controlling inflation

5. Which of the following sentences is free of any gender, nationality, age, or race bias?

A) We need someone young and energetic to man the stockroom.
B) Cho Yung is a hardworking exchange student who excels in science.
C) His conservative views will benefit the company's bottom line.
D) Firemen are the bravest and most courageous people in the world.

Solutions: