Tina withdraws $20,000 from her money market account to start up her own house cleaning business. Over that time, the account would have earned 3 percent interest. In order to properly account for all costs of her business, Tina must not forget:
A. the opportunity cost of $2,600.
B. the fixed cost of $20,600 and the opportunity cost of $600.
C. the fixed cost of $20,600.
D. the opportunity cost of $600.
Answer: D
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There is an exchange rate between
a. every pair of currencies. b. the world's major currencies but not between the currencies of less-developed countries. c. currencies on a fixed-exchange rate system but not for those on a floating-rate system. d. the currencies of the European Union but not for the nations outside the European Union.
If a larger fraction of the adult population is working in the marketplace, household production
A) counted in real GDP increases. B) not counted in real GDP increases. C) counted in real GDP decreases. D) not counted in real GDP decreases.
The practice of factoring involves
A) the syndication of underwriting large security issues. B) the selling of accounts receivable at a discount in return for cash. C) breaking up large mutual funds into smaller funds. D) spreading the risk of insurance through reinsurance.
Which of the following is included in M1?
A. Certificates of deposit. B. Treasury bills. C. Balances in transactions accounts. D. Balances in savings accounts.