Which types of investment accounts are investors likely to choose if they are trying to minimize risk? Why?
What will be an ideal response?
Bank accounts insured by the Federal Deposit Insurance Corporation are the safestway of storing and investing money. Investors trying to minimize risk will invest in FDIC-insured certificates of deposit or money market deposit accounts.
A-head: INVESTMENT ACCOUNTS
Concept: Bank accounts
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A commercial bank is defined as
A) any institution that accepts deposits. B) a firm that is chartered to accept deposits and make loans. C) the institution that sets regulations for commercial activities. D) a firm that obtains funds by selling shares and then buys U.S. Treasury bills. E) any institution that makes loans.
In the Cobb-Douglas production function Y = AK3/4L1/4,
A) capital is a more expensive input than labor. B) capital is more plentiful than labor. C) diminishing returns to capital are three times greater than are diminishing returns to labor. D) capital has a larger share in national income than does labor.
A firm that is the sole producer of a good or service with no close substitutes is called a:
A. perfectly competitive firm. B. monopolist. C. oligopolist. D. monopolistically competitive firm.
Which of the following is a cause of higher birth rates in developing countries?
a. Children are viewed as a source of farm labor b. Children are viewed as economic and social security as the parents age c. Higher child mortality rates engender higher birth rates d. All the answers are correct e. None of the answers is correct