If Howard takes out a $400 loan for one year at 5 percent interest annually, he will pay back a total of:
A. $400.
B. $440.
C. $420.
D. $20.
C. $420.
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Suppose a bank has $6,000 in checkable deposits and the required reserve ratio is 0.2 . If the bank wishes to hold no excess reserves, its actual reserves will be: a. $4,000
b. $1,200. c. $3,000. d. less than $1,000. e. $4,800.
Given a one-year Canadian bond with a yield of 8 percent, what will be the U.S. investor's rate of return at maturity if the Canadian dollar appreciates 10 percent against the U.S. dollar?
a. 2 percent b. 8 percent c. 10 percent d. 18 percent e. 25 percent
An employer would never operate on the upward-sloping part of an MRP curve because
a. he would not be maximizing profits. b. he would be hiring workers at wages above MRP. c. the number of workers is too large to get economies of scale. d. he would then have too little capital per worker.
During 2011 the inflation rate in Brazil was about 6.6% while in the U.S. it was about 3.3%. At the start of 2011 the nominal exchange rate was about 1.7 Brazilian real per U.S. dollar. If purchasing-power parity holds, about what should the nominal exchange rate have been at the end of 2011? Show your work