Owning a share of stock entitles the shareholder to a portion of the firm's profits.
Answer the following statement true (T) or false (F)
True
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What is the equation of exchange? Suppose that real GDP and velocity are constant. In this case, what effect will an increase in the quantity of money have?
What will be an ideal response?
Is it possible for technological change to be negative? If so, give an example
What will be an ideal response?
Which of the following is not a reason for firms to choose a salary system rather than a commission system to compensate their employees?
A) If workers are paid on the basis of the number of units of output they produce, they may become less concerned about quality. B) Commission compensation systems are riskier for employees than a salary system, and many workers dislike risk. C) Research has shown that most companies will find that a salary system will be more profitable than a commission system. D) It is often difficult to attribute output to particular workers.
Which of the following statements is NOT true of the VIX?
A) It is calculated based on prices of call and put options of the S&P 500. B) Investors who want to hedge against stock market volatility can sell VIX options. C) A VIX of 10 indicates investors expect the S&P 500 to fluctuate by 10% at an annual rate over the next 30 days. D) The VIX is a measure of fear in the stock market.