The option writer is:
A. the seller of an option.
B. the underlying asset of the option.
C. the buyer of an option.
D. the individual who obtains the rights.
Answer: A
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If the economy in the graph shown is currently at point B, and the government enacts contractionary fiscal policy, in the short run the economy will most likely move to point:
A. A
B. It is likely to be unaffected and stay at point B
C. C
D. D
Which of the following is the result of a banking panic?
a. A decrease in the demand deposit multiplier b. An increase in the money supply c. An increase in bank reserves d. A decrease in the money supply e. An increase in the demand deposit multiplier
Tele-Com, Inc, the nation's largest cable TV company, tested the effect of a price reduction for the Disney Channel. It lowered prices from $10.75 to $7.95 and found that the number of customers more than doubled. This means the
a. demand curve for the Disney Channel shifted to the right. b. supply curve of the Disney Channel shifted to the left. c. demand for the Disney Channel is elastic in this price range. d. demand for the Disney Channel is inelastic in this price range.
An individual buys a bond for $1,000 and sells it one year later for $1,050. What is the annual interest rate return that this individual has received on this bond?
A) 5.0 percent B) 50.0 percent C) 7.5 percent D) 4.0 percent E) 0.05 percent