If the annual interest rate is 8%, what would you expect to pay for a bond paying a lump sum of $10,000 in ten years?
A) $4,632
B) $9,259
C) $10,000
D) $21,589
A
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The interest rate that banks charge other banks for loans is the
A) discount rate. B) prime rate. C) federal funds rate. D) Treasury bill rate.
The inclusion of external costs in the decision making process determining equilibrium price and quantity leads to
A) lower priced items and increased quantity. B) lower priced items and a decline in quantity. C) higher priced items and increased quantity. D) higher priced items and a decline in quantity.
Because of differences in culture and language, it is not surprising that:
A) Eurozone nations are opposed in theory to the currency union but accept it in practice. B) Eurozone nations tend to be more homogeneous than states in the United States. C) demand shocks tend to be symmetric, whereas supply shocks are asymmetric. D) the year-to-year flow of people between states in the United States is larger than the same flow between member nations in the Eurozone.
If the U.S. exchange rate falls,
A) foreign products are now more expensive toforeigners. B) foreign products are now cheaper to U.S. citizens. C) U.S. products are now more expensive to U.S. citizens. D) U.S. products are now cheaper to foreign countries.