What takes place in the indirect finance market?
A) Corporate and government bonds are sold to savers.
B) Government purchases of buildings and equipment are sold to the highest bidder.
C) Part ownership of corporations is sold in the form of stocks.
D) Deposits of savers are accepted and lent to borrowers.
D
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The coupon rate on newly issued bonds is usually higher for bonds with ________ terms and ________ risk that the borrower will go bankrupt.
A. shorter; greater B. shorter; smaller C. longer; smaller D. longer; greater
There is an indifference curve through every bundle because of the assumption of
A) transitivity. B) completeness. C) rationality. D) nonsatiation.
A public good is ________ and ________.
A) excludable; nonrival B) nonexcludable; rival C) excludable; rival D) nonexcludable; nonrival
If UIP holds, the interest rate is 4%, and the foreign currency is expected to appreciate by 3%, then the foreign interest rate is approximately
a) 1% B) 3% C) 7% D) none of the above