The main conclusion drawn from the theory of interest rate parity is that
A) a single currency will increase economic welfare.
B) arbitrage opportunities may persist for long periods of time.
C) investors can seldom earn higher returns from foreign investments than from domestic ones.
D) exchange rates adjust slowly to their proper levels.
E) fixed exchange rates are superior to flexible ones.
C
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The estimated market value of an asset on its expected disposal date is known as the ____________________
Fill in the blank(s) with correct word
A ___________ budget prepared for only one level of sales volume.
A. Static B. Flexible C. Volume D. Production activity
Which of the following accurately describes break-even analysis?
A. the process of calculating how many units of product must be sold to cover fixed costs B. the process of calculating the difference between marginal revenue and marginal cost C. the process of calculating the point at which fixed costs and variable costs are equal D. the process of calculating the percentage change in quantity demanded in response to a percentage change in price E. the process of calculating the sales volume needed to achieve a profit of zero
At a local fast food joint, cars arrive randomly at a rate of 12 every 30 minutes. Service times are random (exponential) and average 2 minutes per arrival. The average time in the queue for each arrival is
A) 2 minutes. B) 4 minutes. C) 6 minutes. D) 8 minutes. E) 10 minutes.