Write the formula to find the present value of $750 to be paid in 5 years if the interest rate is 3 percent
$750/(1 + .03)5
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The main disadvantage of using money as a store of value is that
A. unlike other assets, money serves as a medium of exchange. B. barter is a more efficient way to conduct transactions than using money. C. other assets pay relatively higher rates of interest than money. D. other assets provide greater anonymity than cash.
The purpose of the Supplemental Security Income program is
A) to provide a minimum income for all households with children. B) to provide a guaranteed minimum income for all Americans. C) to provide a minimum income for the aged, blind, and the disabled. D) to supplement Social Security for the elderly with medical problems.
The period from 1977 through 1989 saw a wave of corporate mergers in the U.S. These mergers were characterized by
a. the use of junk bonds for financing buyouts. b. the low debt-to-equity ratios of the resulting firms. c. resulting firms that focused on "core competencies" rather than diversification. d. a "buyers' market" in which acquiring firms could purchase the stock of takeover targets for less than market value. e. All of the above.
Firms would like to know the price elasticity of demand for their products because it helps determine the effect of price changes on the firms':
a. property taxes. b. competitors' profits. c. quantity supplied. d. revenues. e. total costs.