One reason most central bankers do not set an inflation target of zero is:
A. they believe it would cause price volatility.
B. it is almost impossible to achieve.
C. the central bank could hit the lower bound.
D. none of the answers given is correct.
Answer: C
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Checking account deposits are counted in M1, but savings account deposits are not because
A) checking deposits can be used for payment; cash in savings cannot. B) checking deposits are a form of consumption; savings deposits are a form of investments. C) Trick question! Neither type is counted in M1. D) Trick question! Both deposit types are counted in M1.
Dividends are the interest rates paid on stocks
Indicate whether the statement is true or false
If a company is liquidated, common stockholders ______.
a. are entitled to nothing and lose their investment b. receive their dividends first, before any of the company’s other obligations are met c. are obligated to pay any debts remaining after the company’s assets have been sold d. receive all remaining corporate assets after the company’s debts and preferred stockholders have been paid
Refer to the information provided in Figure 9.3 below to answer the question(s) that follow. 
Figure 9.3Refer to Figure 9.3. This firm's shutdown point corresponds to Point
A. A. B. B. C. C. D. D.