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PRAXIS Praxis Business Education: Content Knowledge (5101)Exam Sample Questions (Q34-Q39):

NEW QUESTION # 34
The Federal Reserve Bank can increase the rate of growth of the money supply primarily by

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

Answer: C

Explanation:
The Federal Reserve increases the money supply by buying government securities in open market operations, injecting cash into the banking system, which banks can then lend. Option A (raising reserve requirements) reduces the money supply by limiting lending. Option B (selling securities) withdraws cash, decreasing the money supply. Option C (raising the discount rate) discourages borrowing, also reducing the money supply.
This question aligns with the Economics category, emphasizing monetary policy.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Economics; Money, Banking, and Financial Markets, Chapter 15.

NEW QUESTION # 35
Which of the following terms refers to a prescribed code of behavior for communicating over the Internet?

A. Piracy
B. Privacy
C. Hacking
D. Netiquette

Answer: D

Explanation:
Netiquette refers to the set of informal rules and etiquette governing respectful and appropriate communication on the Internet. Option A (privacy) relates to data protection, not communication behavior.
Option B (piracy) involves illegal copying of software or media. Option C (hacking) refers to unauthorized system access. This question falls under the Information Technology category, focusing on online communication standards.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Information Technology; Introduction to Business Information Systems, Chapter 8.

NEW QUESTION # 36
Martha sold 1,000 poinsettia plants at $9 each and had 100 remaining in inventory. Joe sold 1,000 poinsettia plants at $8 each and had none remaining in inventory. Which of the following can be inferred from the scenario?

A. Joe's price and Martha's price are at equilibrium.
B. Only Joe's price is at equilibrium.
C. Joe's price and Martha's price are above equilibrium.
D. Martha's price is below equilibrium.

Answer: B

Explanation:
In a market, equilibrium price clears inventory (no surplus or shortage). Joe sold all 1,000 plants at $8 with no inventory left, suggesting his price is at equilibrium. Martha sold 1,000 plants at $9 but has 100 left, indicating a surplus, so her price is above equilibrium. Option A is incorrect, as Martha's price is not below equilibrium. Option B is incorrect, as Martha's price is not at equilibrium. Option D is incorrect, as Joe's price is at equilibrium. This question falls under the Economics category, focusing on supply and demand.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Economics; Principles of Economics, Chapter 4.

NEW QUESTION # 37
Which of the following is a primary characteristic of successful entrepreneurs?

A. Strong desire for isolation
B. Flexible code of ethics
C. Willingness to fail
D. Reluctance to change

Answer: C

Explanation:
Successful entrepreneurs often exhibit a willingness to fail, viewing setbacks as opportunities to learn and innovate. This resilience drives risk-taking and persistence. Option A (desire for isolation) is incorrect, as entrepreneurs typically collaborate and network. Option B (flexible ethics) is not a positive trait, as integrity is crucial. Option D (reluctance to change) hinders adaptability, a key entrepreneurial quality. This question aligns with the Entrepreneurship category, emphasizing entrepreneurial traits.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Entrepreneurship; Entrepreneurship: Theory, Process, and Practice, Chapter 3.

NEW QUESTION # 38
A college graduate wants to start a business and looks into franchise opportunities. The graduate has $30,000 and has narrowed the selection to three different franchise choices. Which of the following franchise credentials is the most important to review?

A. Broker policy agreement
B. Franchise disclosure document
C. Owner's handbook
D. Fee schedule agreement

Answer: B

Explanation:
The Franchise Disclosure Document (FDD) is a legal document required by the Federal Trade Commission, providing detailed information about the franchisor, including fees, obligations, financial performance, and risks. It is critical for evaluating franchise opportunities. Option A (owner's handbook) is operational, not a credential. Option B (fee schedule agreement) is part of the FDD but not comprehensive. Option C (broker policy agreement) is not a standard franchise document. This question falls under the Entrepreneurship category, focusing on franchise evaluation.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Entrepreneurship; Entrepreneurship: Starting and Operating a Small Business, Chapter 5.

NEW QUESTION # 39
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Business-Education-Content-Knowledge-5101 Test Voucher & Business-Education-Content-Knowledge-5101 Exam Learning

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PRAXIS Praxis Business Education: Content Knowledge (5101)Exam Sample Questions (Q34-Q39):

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