Most stock indexes use which of the following measures to weight the companies that participate in the index?
a. The company's sales volume
b. The company's book value
c. The current profits
d. The available cash
e. The market capitalization
e
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An investment bank purchases securities from a corporation at a predetermined price and then resells them in the market. This process is called
A) underwriting. B) underhanded. C) understanding. D) undertaking.
Assume you borrow $1,000 on credit cards at an annual interest rate of 10 percent. If the inflation rate is 12 percent during the year and the debt has to be paid back in 12 months, then:
a. income will be redistributed from you to the bank. b. the real return for the bank will be greater than initially expected. c. you will repay the bank with fewer dollars than you borrowed. d. the dollars repaid will have less purchasing power than those borrowed. e. the bank will obtain the same return on the loan as initially expected.
U.S. exports make up less than 20 percent of GDP
a. True b. False Indicate whether the statement is true or false
Refer to the graph below. If the economy is initially at equilibrium at the intersection of AD1 and AS1 and there is a tax cut, then, from a skeptical mainstream perspective, the immediate impact is that aggregate:
A. Demand would increase to AD2 and aggregate supply would increase to AS2
B. Demand would increase to AD2 and aggregate supply would remain at AS1
C. Supply would increase to AS2 and aggregate demand would remain at AD1
D. Demand would remain at AD1 and aggregate supply would remain at AS1