Because checking accounts are ________ liquid for the depositor than savings accounts, they earn ________ interest rates. A) less; higher B) less; lower C) more; higher D) more; lower ANSWER D
Date: September 10th, 2020
The money multiplier is computed as follows: A) (c + 1)/(c + rr + e). B) (c + 1)/(c + rr). C) 1/rr. D) (c + 1)/(c + e). ANSWER A
Date: September 10th, 2020
Of the following assets, the least liquid is A) stocks. B) traveler’s checks. C) checking deposits. D) a house. ANSWER D
Date: September 10th, 2020
The collapse of the subprime mortgage market increased the spread between Baa and default-free U.S. Treasury bonds. This is due to A) a reduction in risk. B) a reduction in maturity. C) a flight to quality. D) a flight to liquidity. ANSWER C
Date: September 10th, 2020
The price of one country’s currency in terms of another country’s currency is called the A) exchange rate. B) interest rate. C) Dow Jones industrial average. D) prime rate. ANSWER A
Date: September 10th, 2020
Adjusted R2 gives the actual percentage of the variation in the dependent variable explained by the regression model. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
In an open mixed economy, injections are saving, taxation, and import spending. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
The goal of “personalized pricing” is to determine how much each individual customer is willing to pay for a product. As such, it is an application of first-degree price discrimination. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
The overall predictive power of the estimated regression equation is measured by the F-statistic. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Net exports are positively related to income in the rest of the world. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
