Insurance company assets will include:
A. only stocks.
B. only bonds.
C. only U.S. Treasury securities.
D. stocks and bonds.
Answer: D
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During the last decade, the price of shoes rose substantially yet people bought more pairs of new shoes each year. This experience suggests that the
A) supply curve of shoes shifted leftward. B) demand curve for shoes shifted leftward. C) supply curve of shoes shifted rightward. D) demand curve for shoes shifted rightward.
Banks hold 100% of their checking deposits as vault cash to ensure that bank runs do not occur
Indicate whether the statement is true or false
George is trying to forecast the future price of IBM's common stock. To do so he makes use only of past prices of IBM stock. George
A) has adaptive expectations. B) has rational expectations. C) is likely to rapidly adjust his forecast to news affecting the future profitability of IBM. D) is likely to make forecasts that reflect closely IBM stock's fundamental value.
Recall the Application about the government of Mexico City repainting highway lane lines to transform a 4-lane highway into a 6-lane highway to answer the following question(s).When computing percentage changes, using the simple approach results in increases and decreases which are:
A. identical. B. symmetric. C. not symmetric. D. more accurate than using the midpoint method.