A country which incurs a current account deficit will most likely have a financial or capital account surplus
Indicate whether the statement is true or false
TRUE
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If the long-term real interest rate is 5.1%, the term structure effect is 2.0%, the default-risk premium is 1.7%, and the expected rate of inflation is 3.3%, the short-term nominal interest rate will be
A) -1.9%. B) 4.7%. C) 5.5%. D) 12.1%.
If good X is a normal good and its price rises, then quantity demanded
a. may or may not fall. b. will always fall. c. will always rise. d. will remain unchanged.
Suppose that a bank has $30 million in asset X, $10 million in asset Y, and $20 million in asset Z. Each asset has a different risk weight. The risk weight for asset X is 30%, the risk weight for asset Y is 60%, and the risk weight for asset Z is 10%. The amount of risk-weighted assets for this bank is ____________ million. Assuming that the bank has to hold capital equal to 8% of its
risk-weighted assets, the bank must hold _____________ million in capital. A) $17; $13,6 B) $60; $4.8 C) $17; $1.36 D) $66; $5.28
Theoretically, the effect of private health insurance on the price and quantity of health care consumed:
A. Is the same as that of public health insurance B. Is a lower price and a higher quantity compared to public health insurance C. Is a higher price and a lower quantity compared to public health insurance D. Is a lower price and a lower quantity compared to public health insurance