A financial intermediary that sells shares in itself to the public, and then uses the funds to buy a wide variety of financial assets is called a:
A. mutual fund.
B. stock exchange.
C. commercial bank.
D. credit union.
Answer: A
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A rise in demand for restaurant meals is likely to cause which of the following in the long run?
a. economic losses for each restaurant b. a lower price for each restaurant meal c. fewer restaurants in the industry d. more restaurants in the industry e. economic profit for restaurants
Which of the following is the velocity of money?
a. How quickly the average worker gets paid after his or her work is done. b. The average speed of ATM machines. c. The average number of times per year that a given dollar of the money supply is spent. d. None of the above.
The metaphor used to describe the working of the price system to achieve efficiency in a free market is
A. Occam’s razor. B. the prisoner’s dilemma. C. the invisible hand. D. the benefit principle.
The aggregate supply curve shows the relationship between the:
a. The Consumer Price Index and the level of output. b. Real risk-free interest rate and expected inflation. c. The nation's average price level (i.e., the implicit price index) and the level of output. d. Nominal exchange rate and level of output. e. None of the above.