Everything else held constant, an increase in marginal tax rates would likely have the effect of ________ the demand for municipal bonds, and ________ the demand for U.S. government bonds. A) increasing; increasing B) increasing; decreasing C) decreasing; increasing D) decreasing; decreasing ANSWER B
Date: September 10th, 2020
When housing prices began to decline after their peak in 2006, many subprime borrowers found that their mortgages were “underwater.” This meant that A) the value of the house fell below the amount of the mortgage. B) the basement flooded since they could not afford to fix the leaky plumbing. C) the roof leaked during […]
Date: September 10th, 2020
Through correspondent banking, large banks provide services to small banks, including A) loan guarantees. B) foreign exchange transactions. C) issuing stock. D) debt reduction. ANSWER B
Date: September 10th, 2020
Everything else held constant, if the tax-exempt status of municipal bonds were eliminated, then A) the interest rates on municipal bonds would still be less than the interest rate on Treasury bonds. B) the interest rate on municipal bonds would equal the rate on Treasury bonds. C) the interest rate on municipal bonds would exceed […]
Date: September 10th, 2020
Refer to Scenario 2. What are the units of measurement for the standard error of the estimate? What will be an ideal response? ANSWER The standard error of the estimate is always in the same units as the dependent variable, in this case dollars, specifically $7,211.85.
Date: September 10th, 2020
The Bretton Woods conference in 1944 established the gold standard, which was abandoned in 1971. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Starting in 2008 and continuing into 2012, the Japanese yen kept appreciating against the U.S. dollar, hurting Japanese exports to the U.S. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
A disadvantage of ________made from precious metals is that it is very heavy and hard to transport from one place to another. A) commodity money B) fiat money C) electronic money D) paper money ANSWER A
Date: September 10th, 2020
If a borrower takes out a $200 million loan in a repo agreement and is asked to post $220 million of mortgage-backed securities as collateral, the “haircut” is A) 5%. B) 10%. C) 20%. D) 50%. ANSWER B
Date: September 10th, 2020
Suppose a perfectly competitive firm is in long-run equilibrium and there is a decrease in demand. Suppose also that the firm operates in an industry in which the prices of productive inputs vary with the level of output, increasing when output increases and decreasing when output decreases. Which of the following will occur at the […]
Date: September 10th, 2020
