What is the formula you should use to determine a bank account's future value in one year?
A) Future value equals the present value multiplied by one plus the rate of interest in decimals.
B) Future value equals the present value divided by one plus the rate of interest in decimals.
C) Future value equals the present value plus the rate of interest.
D) Future value equals the present value minus the rate of interest.
A
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A firm maximizes profits when the ________ equals the ________
A) actual marginal product of capital; actual marginal product of labor B) actual marginal product of capital; expected marginal product of capital C) expected marginal product of capital; the opportunity cost of capital D) expected marginal product of capital; user cost of capital
The practice of firms temporarily reducing prices in order to eliminate competition is called:
a. competitive pricing. b. predatory pricing. c. discount pricing. d. strategic pricing.
Now that Social Security payments are indexed the:
A. nominal value is adjusted to maintain a constant real value. B. real value is adjusted to maintain a constant nominal value. C. payments are adjusted so retirees can buy more with their payments over time. D. payments are not adjusted enough, so retirees can buy less with their payments over time.
The main purpose of the Fed is to:
a. serve as the bankers' bank for member banks. b. regulate interest rates. c. print Federal Reserve Notes. d. regulate financial institutions. e. maintain the proper functioning of our money system.