One of the three functions of money is to serve as a:
A. real liability.
B. financial asset.
C. financial liability.
D. real asset.
Answer: B
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Which of the following are TRUE concerning the distinction between interest rates and returns?
A) The rate of return on a bond will not necessarily equal the interest rate on that bond. B) The return can be expressed as the difference between the current yield and the rate of capital gains. C) The rate of return will be greater than the interest rate when the price of the bond falls during the holding period. D) The return can be expressed as the sum of the discount yield and the rate of capital gains.
Reaching a Nash equilibrium means that:
A. a stable outcome has been reached. B. there is no stable outcome to the game. C. the players will never reach a positive-positive outcome. D. each player has achieved their highest payoff in the game.
The advent of Netflix movie streaming and Redbox kiosks renting DVD and Blu-ray movies have virtually demolished the market for video rentals from brick and mortar stores such as Blockbuster. This is an example of
a. creative destruction.
b. derived demand.
c. capital accumulation.
d. the difference between normal and economic profits.
Who benefits from rising inflation?
A) those who already have fixed-rate loans B) those considering taking out a loan C) lenders that already made loans D) lenders considering whether to make new loans