A variable that is essential to economic growth is:
A. savings.
B. technology.
C. capital.
D. All of these are important to economic growth.
Answer: D
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The ________ relation indicates that the interest differential between investments in two currencies will equal the forward premium or discount between the currencies
A) Fisher equation B) interest rate parity C) purchasing power parity D) term structure of interest rates
Refer to Figure 4.1. A shift from S2 to S1 will result from which of the following?
A) an increase in expected future profits B) an increase in net exports C) a decrease in corporate taxes D) an increase in tax credits for savings
A futures contract is
A) an agreement that specifies the delivery of a commodity or financial instrument at an agreed-upon future date at a currently agreed-upon price. B) an agreement that specifies the delivery of a commodity or financial instrument at an agreed-upon future date, with the price to be negotiated at the time of delivery. C) an agreement that specifies the delivery of a commodity or financial instrument at a currently agreed-upon price, with date of delivery to be negotiated subsequently. D) an agreement that specifies the delivery of a commodity or financial instrument, with the price and date of delivery to be negotiated subsequently.
Indirect stock ownership is used to hide information about actual stock ownership for purposes of income tax evasion
Indicate whether the statement is true or false