Which of the following statements best describes financial markets?
A. Financial markets today offer fewer instruments than they did in the past.
B. Financial markets are a good example of unregulated markets.
C. Financial markets increase the speed of buying and selling, but they also increase the cost since people are earning fees for these transactions.
D. Financial markets lower the cost and increase the speed of buying and selling financial instruments.
Answer: D
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What did China create to allow more international trade?
A) Special economic zones B) Foreign exchange centers C) More open and transparent government meetings D) New educational efforts
Which of the following changes shifts the AD curve up and to the right?
A) A rise in the nominal money supply B) An increase in income taxes C) An increase in the risk on nonmonetary assets D) A decrease in the future marginal productivity of capital
The long-run supply curve of a perfectly competitive market is a:
a. an upward rising step function. b. a downward sloping step function. c. a vertical line at the market price. d. a horizontal line at the market price.
In answering which of the following questions would you find it necessary to calculate a present value?
a. Should Jane put $1,000 today into a 5-year certificate of deposit that pays 4 percent annual interest? b. Should ABC Corporation buy a factory today for $2 million, knowing that the factory will yield the corporation $3 million after 5 years? c. If Jill puts $5,000 today into a bank account that pays 3 percent interest, then how much will she have in the account after 2 years? d. You would find it necessary to calculate a present value in order to answer all of these questions.