U.S. Treasury securities are considered to carry no risk spread because:
A. they are the closest thing to default-risk free that an investor can obtain.
B. the yields on U.S. Treasury bonds are always low.
C. the yields on U.S. Treasury bonds never change.
D. the prices of U.S. Treasury bonds never change.
Answer: A
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Which of the following allow banks to minimize the cost to a business of borrowing?
I. Borrowing long and lending short II. Raising funds from a large number of depositors III. Creating money by lending all their reserves A) I only B) II only C) I and III D) II and III
The Civil War's (1861–1865) impact on the growth and development of the U.S. economy was negative
Indicate whether the statement is true or false
The aggregate demand curve indicates the relationship between:
a. the real wage rate and the quality of resources demanded by producers of goods and services. b. the interest rate and the amount of loanable funds demanded by borrowers. c. the natural rate of unemployment and the demand for goods and services when the economy is in long-run equilibrium. d. the general price level and the aggregate quantity of goods and services demanded.
Sam, a U.S. citizen, buys bonds issued by a Greek company that bottles olives. Sam's purchase is
a. foreign direct investment. By itself it increases U.S. net capital outflow. b. foreign direct investment. By itself it decreases U.S. net capital outflow. c. foreign portfolio investment. By itself it increases U.S. net capital outflow. d. foreign portfolio investment. By itself it decreases U.S. net capital outflow.