Compare and contrast hedge funds and mutual funds in terms of the benefits and drawbacks of each
What will be an ideal response?
The benefits of mutual funds include: low management fees, full disclosure of holdings, shares are liquid. and lower risk. The drawbacks are: not allowed to follow certain investment strategies and possibly lower returns. The benefits of hedge funds are: allowed to use sophisticated investment strategies and possibly higher returns. The drawbacks are: high management fees, limited disclosure of holdings, investment in fund may be illiquid, and higher risk.
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When the balance of trade is in balance, we know with certainty that
A) the value of all debit transactions equals the value of all credit transactions. B) the value of exports of goods equals the value of imports of goods. C) the value of capital exports equals the value of capital imports. D) the value of exports of goods and services equals the value of imports of goods and services.
Which of the following is not a component of the M1 money supply?
a. Demand deposits. b. Large-denomination (more than $100) bills. c. Interest-earning checking deposits. d. Outstanding balances on credit cards.
When a price floor is set above the equilibrium price, quantity supplied will exceed quantity demanded, resulting in
a. excess demand or shortages. b. excess supply or surpluses. c. equilibrium prices. d. price controls.
Based on the information in the table, what quantity of reserves did the Federal Reserve inject into the economy in 1932? Currency held by public (in billions)Reserve-deposit ratioBank reserves (in billions)Money supply (in billions)December 1931$4.590.095$3.11$37.3December 1932$4.820.109$3.18$34.0
A. $0.07 billion B. $0.23 billion C. $0.16 billion D. $0.30 billion