As an investor, would you agree to the statement “put all your eggs in one basket?” Substantiate your answer.
What will be an ideal response?
No. Perhaps the first rule of safe investing is: Always diversify—never put all your eggs in one basket. A person or an organization’s holdings of securities from several different corporations is called a portfolio of investments. A portfolio tends to be far less risky than any of the individual securities it contains because of the benefits of portfolio diversification.
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The equation of exchange is an accounting identity, not an economic theory.
Answer the following statement true (T) or false (F)
Which of the following is a characteristic of economics?
A. the way society deals with people's needs B. the focus on how people behave not in their own self-interest C. allocation of limited resources in an effort to satisfy potentially unlimited wants D. all of these
A currency swap can
A. make the foreign exchange rate more volatile over time. B. make foreign goods more expensive in the domestic market. C. make domestic goods more expensive in foreign countries. D. reduce foreign exchange risk.
The annual cost of producing the entire output of goods and services in the economy
A) includes durable goods but excludes nondurable goods. B) is total income. C) can be calculated entirely on the basis of financial transactions. D) includes financial transactions.