Money markets are markets for

A) foreign currency exchange.
B) corporate stocks.
C) long-term bonds.
D) short-term debt securities.
E) preferred securities.


D

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In the two-period model, suppose a household's income in the first period is $40,000, income in the second period is $30,000, and the real interest rate is 25 percent. Draw a diagram showing the budget constraint. Now, suppose the real interest rate rises to 30 percent. Draw the new budget constraint. For the budget constraints you have drawn, be sure to show the values of the intercepts on each axis. If the household decides that its consumption in period 1 should always equal its consumption in period 2, determine whether the household is worse off or better off because of the decline in the real interest rate. Show your work.

What will be an ideal response?

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The denominator of a return ratio will be some measure of the company's income for the period

a. True b. False Indicate whether the statement is true or false

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All of the following are potential advantages of retention EXCEPT

A) lower expenses. B) increased cash flow. C) encouragement of loss prevention. D) protection from catastrophic losses.

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Ms. Baridis compared herself to:

a. Michael Milken. b. Darlene Druyun. c. Harry Stonecipher. d. Jose Canseco.

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