A coupon bond that has no maturity date and no repayment of principal is called a A) consol. B) cabinet. C) Treasury bill. D) Treasury note. ANSWER A
Date: September 10th, 2020
Information plays an important role in asset pricing because it allows the buyer to more accurately judge A) liquidity. B) risk. C) capital. D) policy. ANSWER B
Date: September 10th, 2020
The interest rate thought to have the most important impact on aggregate demand is the A) short-term interest rate. B) T-bill rate. C) rate on 90-day CDs. D) long-term interest rate. ANSWER D
Date: September 10th, 2020
Everything else held constant, an increase in autonomous planned investment spending will cause the IS curve to shift to the ________ and aggregate demand will ________. A) right; increase B) right; decrease C) left; increase D) left; decrease ANSWER A
Date: September 10th, 2020
Determine whether each of the following outputs is considered an intermediate good, a final good, or neither for purposes of calculating GDP in the current year. a. New tires put on a new Corvette at Big O Tire store b. The net sales price of a home built in 1990 when it is resold in […]
Date: September 10th, 2020
When the cross price elasticity between good X and other related goods is positive and very low, firm X can be assumed to have: A) minimal market power. B) moderate market power. C) a significant amount of market power. D) virtually no market power. ANSWER C
Date: September 10th, 2020
Which of the following statements about central bank structure and independence is TRUE? A) In recent years, with the exception of the Bank of England and the Bank of Japan, most countries have reduced the independence of their central banks, subjecting them to greater democratic control. B) Before the Bank of England was granted greater […]
Date: September 10th, 2020
The most liquid securities traded in the capital market are A) corporate bonds. B) municipal bonds. C) U.S. Treasury bonds. D) mortgage-backed securities. ANSWER C
Date: September 10th, 2020
The trend in recent years is that more and more governments A) have been granting greater independence to their central banks. B) have been reducing the independence of their central banks to make them more accountable for poor economic performance. C) have mandated that their central banks focus on controlling inflation. D) have required their […]
Date: September 10th, 2020
Which of the following bonds would you prefer to be buying? A) a $10,000 face-value security with a 10 percent coupon selling for $9,000 B) a $10,000 face-value security with a 7 percent coupon selling for $10,000 C) a $10,000 face-value security with a 9 percent coupon selling for $10,000 D) a $10,000 face-value security […]
Date: September 10th, 2020
