A swap designed to compensate for mismatched securities is a type of __________ called a __________ swap
A) speculation; currency
B) speculation; generic
C) hedging; London
D) hedging; plain vanilla
D
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The demand for the U.S. dollar in the foreign exchange market is a derived demand. A derived demand means that the demand is derived from
A) government policy. B) the demand for U.S. goods, services, and assets. C) the supply of U.S. dollars. D) the demand by U.S. residents for foreign goods, services, and assets. E) the domestic demand for U.S. goods and services.
Price elasticity of supply is used to gauge
A) how responsive suppliers are to a change in demand. B) how responsive sales are to a change in input prices. C) how responsive suppliers are to price changes. D) how responsive suppliers are to changes in future prices.
Suppose Jordan and Lee are trying to decide what to do on a Friday. Jordan would prefer to see a comedy while Lee would prefer to see a documentary. One documentary and one comedy are showing at the local cinema. The payoffs they receive from seeing the films either together or separately are shown in the payoff matrix below. Both Jordan and Lee know the information contained in the payoff matrix. They purchase their tickets simultaneously, ignorant of the other's choice. 
Which of the following statements is true?
A. The upper-right cell is the only Nash equilibrium. B. Both the upper-left and lower-right cells are Nash equilibria. C. Both the lower-left and upper right cells are Nash equilibria. D. The lower-left cell is the only Nash equilibrium.
3 questions that every economy faces
What will be an ideal response?