A die is rolled. If it lands 1 or 2, the person receives $90. If it 3 or 4, the person receives $30.00. If it lands 5 or 6, the person receives $60. If the person is willing to pay $60 to take this gamble, they must be
a. risk-averse.
b. risk-neutral.
c. risk-preferring.
d. either risk-neutral or risk-preferring (not risk-averse).
d. either risk-neutral or risk-preferring (not risk-averse).
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____________ is the day with the most frequent price drops,
Fill in the blank(s) with the appropriate word(s).
Answer the following question based on the information given below: Deposits at the central bank = 400 U.S. Government Securities = 600 Checking Deposit = 1,700 Loans = 800 Stockholder's Equity = 70 Other Assets = 450 Other Liabilities = 380 Borrowing from the central bank = 250 Cash in the Vault = 150 If the reserve requirement is 20%, the level of excess reserves equals:
a. 210 b. 440 c. 70 d. 550 e. Cannot be determined with this information.
In some markets consumers may buy many different brands of a product. Which of the statements below best represents a situation where demand for a particular brand would be very elastic?
A. "I pinch pennies in buying other products, but like most people I feel I owe it to myself to get the best brand of this product." B. "The brand I buy is so superior to other available brands that I hardly consider the others." C. "The different brands are almost identical so I always buy the cheapest." D. "I use so little of that product that when I do buy it, I don't pay much attention to the price."
Describe the basic activities of Fannie Mae in the secondary mortgage market. How are these activities financed?
What will be an ideal response?