Central banks get the purchasing power to buy government securities by:
a. Making discount loans to banks.
b. Taking loans from the government.
c. Increasing their liabilities in the form of deposits from banks.
d. All of the above.
e. None of the above.
.C
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If Bonnie can produce either 20 hats or 10 scarves in a month, and Phil can produce either 5 hats or 10 scarves in a month, then
A) Bonnie is more efficient at producing hats, compared to Phil. B) Bonnie is equally efficient at producing scarves, compared to Phil. C) both A and B above are true. D) none of the above are true.
Although the dominance of ________ over ________ is clear in all countries, the relative importance of bond versus stock markets differs widely
A) financial intermediaries; securities markets B) financial intermediaries; government agencies C) government agencies; financial intermediaries D) government agencies; securities markets
Assume that the United States uses 20 worker-hours to produce 1 computer and 5 worker-hours to produce 1 unit of food; assume also that Japan uses 10 worker-hours to produce 1 computer and 30 worker-hours to produce 1 unit of food. Which of the following statements is true?
a. Japan has the comparative advantage in food production. b. The United States has the comparative advantage in food production. c. The United States has the absolute advantage in food production. d. The United States has a lower opportunity cost for making computers. e. Japan has a lower opportunity cost for making food.
The upper limit on the value of a share of common stock is
a. nonexistent b. the value of preferred stock plus dividends c. the return rate on corporate bonds d. the dividends accumulated over the life of the business e. the value of stocks of similar firms