The future value of a deposit in a savings account will be larger
a. the longer a person waits to withdraw the funds.
b. the higher the interest rate is.
c. the larger the initial deposit is.
d. All of the above are correct.
d
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If a savings and loan "pools risk," which of the following must it do?
A) take funds in from a large number of lenders B) have a large spread between the interest rate it charges borrowers and the interest rate it pays lenders C) lend money to a large number of firms D) Both answers A and C are correct.
Sage decides to cash in all his savings to open a recording studio. He has three accounts to cash in. The first earned 9 percent for two years. The second earned 6 percent for three years. And the last earned 3 percent for six years. Supposing he started with $5,000 in each account, from which account will he get the most cash?
a. the two-year account at 9 percent b. the three-year account at 6 percent c. the six-year account at 3 percent d. The accounts are all worth the same.
Which of the following statements is not true?
A. Periods of growth below the potential level are periods of high unemployment. B. Periods of growth above the potential level are periods of low employment. C. Periods of growth below the potential level are periods of low unemployment. D. The potential growth rate in the U.S. economy may have fallen following the financial crisis of 2007-2009.
Suppose that opportunity costs are constant and that Gorge can either bake a maximum of six pies or three cakes in a day. Brandi can either produce a maximum of eight pies or two cakes in a day. Brandi's opportunity cost to produce one cake is
A. six pies. B. two pies. C. four pies. D. one-half pie.