What is a corporate bond and what does it specify?
What will be an ideal response?
A bond is a promise to repay a fixed amount of funds with the coupon rate, the face value of the bond, and the maturity period specified.
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What is the free-rider problem? What results from the free-rider problem? What is a solution to the free-rider problem?
What will be an ideal response?
If a consumer must spend her entire income on some combination of two commodities and chooses to spend it all on just one of the commodities then:
A) the other commodity is an economic bad. B) the other commodity must have zero marginal utility. C) the other commodity generates less utility per dollar spent on the good. D) the two commodities must be perfect substitutes.
The ease with which an asset can be
a. traded for another asset determines whether or not that asset is a unit of account. b. transported from one place to another determines whether or not that asset could serve as fiat money. c. converted into a store of value determines the liquidity of that asset. d. converted into the economy's medium of exchange determines the liquidity of that asset.
A stock market boom which causes stock prices to rise should cause
What will be an ideal response?