The "store of value" function of money means it is the:
a. Asset individuals get for goods and services and then use later to purchase other goods and services.
b. Barter value of a product for which a nation has a comparative advantage.
c. The unit in terms of which people write contracts.
d. Asset people can use to accumulate wealth.
e. Unit in terms of which everything is valued and the basis for establishing relative prices between goods and services.
.D
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A key assumption in the segmented markets theory is that bonds of different maturities
A) are not substitutes at all. B) are perfect substitutes. C) are substitutes only if the investor is given a premium incentive. D) are substitutes but not perfect substitutes.
The mix of stocks and bonds a firm uses to raise funds is called:
A) diversification B) capital structure C) market value D) asset management
If the average height in the classroom were 5 feet 10 inches and Patrick Ewing, who is 7 feet tall, came in and sat down,
a. the average height would rise to 7 feet b. the marginal height would be 5 feet 10 inches c. the average height would not change d. the average height would rise somewhat e. the marginal height would rise
A reserve requirement of 50 percent means a money multiplier of: a. 0.50. b. 2
c. 5. d. 50.