Financial systems in market economies improve the allocation of saving in each of the following ways EXCEPT by:
A. evaluating the potential productivity of alternative capital investments.
B. helping savers to share the risk of individual investment projects.
C. allowing potential favoritism to determine which projects are funded.
D. providing information about which potential use of funds will be most productive.
Answer: C
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Risky transactions are those in which:
A. complete information is not available. B. there is an balance of information between buyer and seller. C. one party to a transaction uses the other party's lack of information to their advantage. D. one party withholds information from the other party and uses that to his advantage.
Which of the following is a belief of the monetarists?
a. They think the Great Depression was made worse by poor conduct of monetary policy. b. They do not believe monetary policy is transmitted to the economy only through its effect on interest rates and planned investment. c. They believe that the interest-investment curve is vertical. d. All of these.
The Federal Reserve System is a(n)
A. corporation owned by its member banks. B. independent branch of the U.S. government. C. corporation owned by the government and member banks. D. agency created by presidential executive order.
“Pure monopoly guarantees economic profits.” Discuss whether this is a valid statement
What will be an ideal response?