A mutual fund is a financial intermediary that pools funds from many investors, each of which may have only a relatively small amount of money available to invest, and divides it among many different firms to create a diversified portfolio
a. True
b. False
Indicate whether the statement is true or false
True
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Central banks often intervene in currency markets. This activity is called
A) managed floating. B) fixing exchange rates. C) currency warfare. D) super-pegging. E) flexible floating.
A lower price level causes us to
A) move up along the aggregate demand curve. B) move down along the aggregate demand curve. C) shift the aggregate demand curve to the right. D) shift the aggregate demand curve to the left.
For direct price discrimination to work
a. The firm must be able to identify the members of the low value group b. The firm must charge a single price to all its customers c. The firm need not worry about any arbitrage since all its customers are charged the same price d. The firm should charge a higher price to those customers with the most elastic demand
At a price of $5, Tyrone buys 10 units of a product; when the price increases to $6, Tyrone buys 8 units. Which of the following is correct about Tyrone's behavior?
a. Tyrone's demand has decreased. b. Tyrone's demand has increased. c. Tyrone's quantity demanded has decreased, and his demand has not changed. d. Tyrone's quantity demanded has increased, and his demand has increased. e. Tyrone's demand has increased, and his quantity demanded has decreased.