Financial instruments are different from money because they:

A. have greater liquidity.
B. can allow for the transfer of risk.
C. can act as a store of value and money cannot.
D. can't be a means of payment but money can.


Answer: B

Economics

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? According to Figure 5-13, if the price of good X falls, the optimal combination will move

A. from U1to a point on a higher indifference curve, such as U3. B. from U2to a point on a higher indifference curve, such as U3. C. from U1to a point on a higher indifference curve, such as U3. D. from U2to a point on a higher indifference curve, such as U1.

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Finite-sample distributions of the OLS estimator and t-statistics are complicated, unless

A) the regressors are all normally distributed. B) the regression errors are homoskedastic and normally distributed, conditional on X1,... Xn. C) the Gauss-Markov Theorem applies. D) the regressor is also endogenous.

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A bank's secondary reserves include its

A. holdings of long-term bonds issued by large corporations. B. passbook saving account balances (a liability to the bank). C. holdings of corporate stock. D. holdings of 6-month Treasury bills.

Economics

Refer to the given data. If plotted on a graph, the slope of the saving schedule would be:



A.  .80.
B.  .10.
C.  .20.
D.  .15.

Economics