As the level of real interest rates rise, the amount of new investment will rise also
a. True
b. False
Indicate whether the statement is true or false
False
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The risk-free rate is the interest rate:
A. borrowers get when the loan is extremely short term. B. at which one would lend if there were no risk of default. C. the government charges for the loans it gives out. D. savers get on their deposits.
The demand for the Franconian franc in the foreign exchange market equals 14,000 - 3,000e and the supply of francs in the foreign exchange market equals 2,000 + 2,000e, where e is the nominal exchange rate expressed in U.S. dollars per franc. If the franc is fixed at 3 U.S. dollars per franc, then to maintain this fixed rate Franconia's international reserves must:
A. decrease by 3,000 francs per period. B. decrease by 9,000 francs per period. C. increase by 9,000 francs per period. D. increase by 3,000 francs per period.
New trade theory states that some countries specialize in the production and export of a particular product because
What will be an ideal response?
The primary difference in certificates of deposit (CDs) that are equal to or less than $100,000 and those over $100,000 (other than the amount) is:
A. CDs equal to or less than $100,000 are issued for only six months or less. B. a bank does not have to include CDs equal to or less than $100,000 in its liabilities. C. CDs greater than $100,000 are issued for only six months or less. D. CDs greater than $100,000 are negotiable and therefore can be bought and sold.