Which of the following can be considered as domestic assets of a country's central bank?
A. The country's government bonds owned by the central bank
B. Foreign currency assets held by the central bank
C. Currency issued by the central bank
D. Bank deposits at the central bank
Answer: A
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The term investment refers, in general, to
A) any action today that has costs today. B) any action today that has costs today but provides expected benefits in the future. C) only large projects, such as building a new factory, undertaken by private firms. D) only the creation of capital goods undertaken by private firms or the government.
The figure above shows Ilene's budget line. If the price of a can of cat food rises, her budget line rotates so that the vertical intercept is
A) unchanged, but the horizontal intercept is closer to the origin. B) unchanged, but the horizontal intercept is farther away from the origin. C) farther away from the origin, but the horizontal intercept is closer to the origin. D) closer to the origin, but the horizontal intercept is farther away from the origin.
If Japanese producers sell computer chips at a higher price in the United States than in Japan, and if there is no cost difference in producing or transporting the chips, the Japanese producers would be practicing
A) cartel pricing. B) price discrimination. C) simple monopoly behavior. D) price sampling.
Money markets are where trades occur for:
A. short-term bonds issued by both governments and private companies. B. bonds of all maturities. C. stocks. D. derivatives.