The success of the SMarT program has proven that changing the way we present options can:
A. help people overcome mental biases.
B. affect people's behavior.
C. avoid regret.
D. All of these statements are true.
Answer: D
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A lender who is worried that its cost of funds might rise during the term of a loan it has made can hedge against this rise without eliminating the chance to profit from a decline in the cost of funds by
A) buying futures contracts on Treasury bills. B) selling futures contracts on Treasury bills. C) buying put options on Treasury bills. D) buying call options on Treasury bills.
The balance of payments schedule can be expressed as
a. X(Yƒ, ?) ? Z(Y, ?) ? F(r ? rƒ) = 0 b. X(Yƒ + ?) + Z(Y, ?) ? F(r ? rƒ) = 0 c. X(Yƒ, ?) ? Z(Y, ?) + F(r ? rƒ) = 0 d. X(Yƒ, ?) + Z(Y, ?) + F(r ? rƒ) = 0
In a market system, the answer to the "for whom to produce" economic question is that goods are allocated to those with the willingness and ability to pay, as expressed through market demand
Indicate whether the statement is true or false
Volume, as reported in stock tables, refers to the
a. number of shares traded. b. percentage of shares outstanding traded. c. number of shares traded times the price they sold at. d. number of shares of a company traded divided by the shares of all companies traded.