If you have a very low tolerance for risk, which of the following bonds would you be least likely to hold in your portfolio?
A) a U.S. Treasury bond
B) a municipal bond
C) a corporate bond with a rating of Aaa
D) a corporate bond with a rating of Baa
D
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A positive externality exists and government wants to apply a per-unit subsidy in order to bring about the socially optimal output. Under what condition will the solution (of the subsidy) be worse than the problem (the market failure)?
A. Under the condition that the subsidy is greater than the marginal external benefit (associated with the positive externality). B. Under the condition that the post-subsidy output is not farther away from the socially optimal output than the pre-subsidy output is from the socially optimal output. C. Under the condition that the post-subsidy output is farther away from the socially optimal output than the pre-subsidy output is from the socially optimal output. D. Under the condition that the subsidy is less than the marginal external benefit (associated with the positive externality). E. none of the above
Choose the statement that is correct:
A. The opportunity cost of a good is equal to its price B. Search activity occurs only in markets where there is a shortage C. Search activity decreases the cost of housing in a rent-controlled market. D. When a price is regulated and there is a shortage, search activity increases.
Sort the following into cash transfer programs and in-kind transfers: - social security - SNAP - TANF - Medicare - Medicaid - housing assistance - earned income tax credit (EITC)
A. cash transfers: social security, SNAP, TANF, and Medicare; in-kind transfers: Medicaid, housing assistance, EITC B. cash tranfers: social security, housing assistance, Medicare, and Medicaid; in-kind transfers: EITC, SNAP, TANF C. cash transfers: social security, EITC, TANF; in-kind transfers: Medicare, Medicaid, SNAP, housing assistance D. cash transfers: EITC, TANF, SNAP; in-kind transfers: social security, Medicare, Medicaid, housing assistance
The total of all planned production for the economy is
A. aggregate supply. B. equal to the total value of unplanned production. C. endowments. D. aggregate demand.