One of the functions of money is to serve as a:
A. valuation tool.
B. medium of exchange.
C. sole way to make payments.
D. completely fixed unit of measure.
B. medium of exchange.
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An increase in the income of country A relative to the income of country B will usually lead to ________.
A. an increase in country A's exports to country B B. an increase in country B's imports from country A C. an increase in country B's demand for the currency of country A D. an increase in country A's demand for the currency of country B
When a corporation announces a major decline in earnings, the stock price may initially decline significantly and then rise back to normal levels over the next few weeks. This impact is called
A) the January effect. B) mean reversion. C) market overreaction. D) the small-firm effect.
Recall the Application about consumer choice between Coke and Pepsi to answer the following question(s).Neuroscientist Read Montague conducted a taste test with Coke and Pepsi. When the taste test was blind, most subjects preferred ________, and when the test was nonblind, most preferred ________.
A. Coke; Pepsi B. Coke; Coke C. Pepsi; Coke D. Pepsi; Pepsi
When a bank has a check drawn and cleared against it:
A. excess reserves in the banking system decline. B. the nation's total money supply falls. C. the bank's balance sheet does not change. D. the amount of required reserves the bank must have will fall.