Suppose that a five-year Treasury bond pays 2.5 percent and a five-year corporate bond pays 8.5 percent, then what is the interest rate spread on this particular corporate bond?
A. 5 percent
B. 6 percent
C. 7.5 percent
D. 9.0 percent
Answer: B
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Holding the money deposits of businesses and households and making loans to the public are the basic functions of
A. the Federal Deposit Insurance Corporation and the Federal Savings and Loan Insurance Corporation. B. district banks of the Federal Reserve System. C. the Open Market Committee and the Board of Governors. D. commercial banks and thrift institutions.
Economists
A) describe reducing tariffs and quotas as shallow integration. B) describe reducing tariffs and quotas as deep integration. C) believe that changing domestic policies affecting trade is a relatively simple process. D) believe that the work of reducing trade barriers is done since most tariffs are low and most quotas eliminated. E) believe the original motivation for nations forming domestic policies and regulations was to create trade barriers to foreign companies.
Consider monopoly, monopolistic competition, and perfect competition. In which of these three market structures does a profit-maximizing firm charge a price that exceeds marginal cost?
a. monopoly only b. monopoly and monopolistic competition only c. monopoly, monopolistic competition, and perfect competition d. The answer cannot be determined without knowing whether the market is in the long run or short run.
The Bureau of Labor Statistics defines the unemployment rate as the percentage of
a. those unemployed relative to those employed. b. the labor force that is unemployed. c. the adult population that is unemployed. d. the adult population that is unemployed or not in the labor force.