Most borrowers value money for:
A. Its own sake
B. What it can buy
C. What it can produce
D. What they have to pay for it
B. What it can buy
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Assume that the yen price of one U.S. dollar rises to 80 yen and that the Bank of Japan has a target exchange rate of 75 yen per dollar. As a result, the Bank of Japan will intervene in the foreign exchange market by:
a. selling U.S. dollars and buying yen. b. selling both U.S. dollars and yen. c. buying U.S. dollars and selling yen. d. buying both U.S. dollars and yen. e. buying U.S. Treasury securities.
If real GDP per person in a country equals $40,000 and 60 percent of the population is employed, then average labor productivity equals:
A. $60,000. B. $66,667. C. $40,000. D. $24,000.
Prior to 2008, a bank might have borrowed reserves from another bank because:
A. banks never borrowed from the Fed. B. it kept its reserves too low and could not meet Fed requirements. C. borrowing reserves from other banks is the only way to gain access to reserves. D. it was in danger of becoming insolvent and collapsing.
Which of the following is LEAST likely to be an outcome of a cartel as compared to the situation before the cartel was formed?
A. Cartel members make fewer profits. B. Cartel members do not compete with each other in pricing decisions. C. Cartel members reduce production. D. Cartel members charge higher prices.