Diversification is:
A. the interest rate at which one would lend if there were no risk of default.
B. the process by which risks are shared among many different assets or people.
C. when a borrower fails to pay back a loan according to the agreed-upon terms.
D. making a market more liquid by being always ready to buy or sell an asset.
Answer: B
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In the real business cycle model, the short-run aggregate supply curve is always the same as ________
A) long-run aggregate supply B) the long-run aggregate demand schedule C) the velocity of money D) the real rate of interest
Today, in the United States, imports are over
A) 17 percent of GDP. B) 1 percent of GDP. C) 8 percent of GDP. D) 4 percent of GDP.
If net exports are a negative number, then:
a. we are not buying enough exports. b. we are buying too many exports. c. GDP will underestimated when measured using the expenditure approach. d. we are exporting more than we are importing. e. we are exporting less than we are importing.
Unions do not need to worry about the effects of greater employment numbers on the wage rate.
Answer the following statement true (T) or false (F)