FIN 366 EDU Motivated Minds/fin366edu.com FIN 366 EDU Motivated Minds/fin366edu.com | Page 3

b) Germany respectively?
2. Arbuckle Corporation is selling two million shares of common stock
in its
initial public offering (IPO). The company's investment banker,
Jones
Securities, will offer the stock to the public at $15 per share and
charge
Arbuckle Corporation an underwriting spread of 7 percent.
a) What will be the gross proceeds from the IPSO?
b) What will be Arbuckle Corporation's net proceeds from the
offering?
c) How much will Jones Securities earn for conducting the offering?
(Questions 3 to 5 have only one answer each)
3. There are ______ members of the Federal Reserve Board of
Governors, ----_______ members of the Federal Open Market
Committee, and ________ Federal Reserve Banks.
a. 12; 7; 12; b. 7; 14; 12; c. 14; 12; 12; d. 7; 12; 12
4. The Fed's primary tools of monetary policy include all the following
except
a. changing the discount rate.