The producer price index focuses on price changes of domestically produced goods and includes services, construction, and imported goods. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Property promised to the lender as compensation if the borrower defaults is called A) collateral. B) deductibles. C) restrictive covenants. D) contingencies. ANSWER A
Date: September 10th, 2020
For a typical short-run production function, so long as marginal product is increasing, average product will be increasing as well. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Which of the following statements regarding the requirement that a firm be granted a license to operate in a particular market is false? A) Advocates of licensing maintain that the practice is necessary to maintain quality of service. B) One of the economic effects of a license requirement is to constrain the available supply of […]
Date: September 10th, 2020
Using the Gordon growth model, a stock’s current price will increase if A) the dividend growth rate increases. B) the growth rate of dividends falls. C) the required rate of return on equity rises. D) the expected sales price rises. ANSWER A
Date: September 10th, 2020
Members of the Executive Board of the European System of Central Banks are appointed to ________ year, nonrenewable terms. A) four B) eight C) ten D) fourteen ANSWER B
Date: September 10th, 2020
Which of the following are short-term financial instruments? A) a repurchase agreement B) a share of Walt Disney Corporation stock C) a Treasury note with a maturity of four years D) a residential mortgage ANSWER A
Date: September 10th, 2020
The decrease in consumption and investment interest-related spending that occurs when the interest rate rises as government spending increases is called: A) crowding in. B) crowding out. C) neutral. D) none of the above. ANSWER B
Date: September 10th, 2020
The ________ of a coupon bond and the yield to maturity are inversely related. A) price B) par value C) maturity date D) term ANSWER A
Date: September 10th, 2020
Collateral requirements lessen the consequences of ________ because the collateral reduces the lender’s losses in the case of a loan default and it reduces ________ because the borrower has more to lose from a default. A) adverse selection; moral hazard B) moral hazard; adverse selection C) adverse selection; diversification D) diversification; moral hazard ANSWER […]
Date: September 10th, 2020
