A major difference between stocks and bonds is that
A) bonds pay their owners dividends while stocks pay interest.
B) bonds pay their owners interest while stocks pay dividends.
C) the interest on a bond depends on the earnings of the corporation and is not guaranteed while dividends on stock are legally required.
D) bonds represent ownership while stock represent debt.
B
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The belief that having more of something makes you happier but in successively smaller increments is called
A) utilitarianism. B) diminishing marginal utility. C) the benefits-received principle. D) transcendentalism.
During the first three years of its existence, the euro
A) depreciated against the $U.S. B) maintained a strict parity with the $U.S. C) strengthened against the $U.S. D) proved to be an impossible dream. E) exported exclusively to the U.S.
The problem of a double coincidence of wants refers to
A) the insatiability of wants in a free market economy. B) poorly-managed companies producing what consumers want only by coincidence. C) the necessity in a barter system of each trading partner wanting what the other has to trade. D) the likelihood that needs will not be the same as wants.
If average Americans start to pay off the huge credit card debt they now hold, then
A) a shift in the supply of loanable funds will cause interest rates to rise. B) a shift in the supply of loanable funds will cause interest rates to fall. C) a shift in the demand for loanable funds will cause interest rates to rise. D) a shift in the demand for loanable funds will cause interest rates to fall. E) there will be an excess demand for loanable funds.