Which of the following statements about the financial and real sectors is true?

A. For every real asset there is a financial asset.
B. For every financial asset there is a real asset.
C. For every real transaction there is a financial transaction.
D. For every financial transaction there is a real transaction.


Answer: C

Economics

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A) remains positive and increases. B) remains positive but decreases. C) decreases and becomes negative. D) remains constant.

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When the Federal Reserve purchases a government bond from a primary dealer, reserves in the banking system ________ and the monetary base ________, everything else held constant

A) increase; increases B) increase; decreases C) decrease; increases D) decrease; decreases

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What phase of the business cycle immediately follows a recession?

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Positive economic principles are those that:

A. predict how people will behave. B. are influenced by political ideology. C. are always correct. D. indicate how people should behave.

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