Regular interest payments made to bondholders are called ________ payments.
A. coupon
B. reserve
C. diversification
D. dividend
Answer: A
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If the bonds of two different countries are identical, their expected returns will:
A. always be equal. B. be equal only if the inflation rate is the same in each country. C. be equal only if the exchange rate between the two countries is fixed. D. be equal if capital flows freely internationally.
Daniel’s Designer Drapes sells its standard curtain sets for $100. The government has just imposed a new tax on Daniel’s products. Which of the following would most likely be the price for a standard curtain set after this tax takes effect?
a. $50 b. $99 c. $100 d. $110
Under which market model are the conditions of entry into the market easiest?
A. Pure monopoly B. Monopolistic competition C. Pure competition D. Oligopoly
If an auto manufacturer installs antilock brakes on a vehicle, and that alone causes the price to increase by $100, the BLS
A. does not count that increase as part of the inflation rate. B. counts only half of the price increase as part of the inflation rate. C. subtracts that price increase from the overall inflation rate. D. counts that increase as part of the inflation rate.