The prime rate is the interest rate charged to a bank's best customers
a. true
b. false
Answer: a. true
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Several years ago, Alcoa was effectively the sole seller of aluminum because the firm owned nearly all of the aluminum ore reserves in the world. This market was not perfectly competitive because this situation violated the:
A) price-taking assumption. B) homogeneous product assumption. C) free entry assumption. D) A and B are correct. E) A and C are correct.
Tony lent Dave $1,000 for one year with the understanding that Dave would repay $1,070 . If the actual inflation rate was 7 percent, then the real rate of interest Tony received is _____
a. 14 percent b. 7 percent c. 4 percent d. 0 percent e. ?7 percent
Capital controls:
A. can be controls on capital inflows. B. can only be controls on capital outflows. C. must be controls on both capital inflows and outflows in order to be effective. D. can be controls on capital inflows or outflows.
The greater the degree of economic integration between markets in the home country and the base country:
A) the greater the volume of transactions and the greater the benefit to the home country of fixed exchange rates. B) the smaller the volume of transactions and the lesser the benefit to the home country of fixed exchange rates. C) the greater the volume of transactions and the greater the benefit to the home country of flexible exchange rates. D) the less important the volume of transactions and the greater the importance of ethnic similarities.