Diversification is:
A. the process by which risks are shared among many different assets or people.
B. making a market more liquid by being always ready to buy or sell an asset.
C. the interest rate at which one would lend if there were no risk of default.
D. when a borrower fails to pay back a loan according to the agreed-upon terms.
A. the process by which risks are shared among many different assets or people.
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In the above figure, illustrate the effect on the AS curve from an increase in the money price of a key resource such as oil
What will be an ideal response?
The Williams' household uses natural gas heat, the Reynolds' use a wood stove. Whose household heating system is most efficient?
A) Without more information, the question is meaningless. B) Williams' C) Reynolds' D) It depends only on the BTU's (the amount of heat produced) per unit of heat-source input.
The underground economy—the informal sector—can be a significant drag on the economies of developing countries. Why are firms in the informal sector often less efficient than firms in the formal sector?
What will be an ideal response?
The largest asset of the Fed from those on this list is
A. currency outstanding. B. loans to depository institutions. C. U.S. Treasury securities. D. mortgage-backed securities.