Which of the following statements is most correct?
A. Usually expected returns are not associated with risk premiums.
B. Usually lower expected returns are associated with higher risk premiums.
C. Usually higher expected returns are associated with higher risk premiums.
D. Usually higher risk premiums are associated with lower expected returns.
Answer: C
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Because central banks have not been willing to give up their option of intervening in the foreign exchange market, the current international financial system can best be described as a
A) variable-pegged exchange rate system. B) moving-pegged exchange rate system. C) hybrid of a fixed exchange rate and flexible exchange rate system. D) flexible-exchange, dollar-pegged exchange rate system.
Which of the following statements correctly characterizes changes in farming and agriculture land during the period between 1870 and 1900?
a. The number of farms rose, but the number of acres under cultivation fell. b. The number of farms fell, but the number of acres under cultivation rose. c. The number of farms, as well as the number of acres under cultivation rose. d. The number of farms, as well as the number of acres under cultivation fell.
Anger over British taxes played a significant role in bringing about the
a. election of John Adams as the second American president. b. American Revolution. c. War of 1812. d. "no new taxes" clause in the U.S. Constitution.
Refer to the above figure. The equilibrium level of real Gross Domestic Product (GDP) is
A. $7 trillion. B. $12 trillion. C. $6 trillion. D. $20 trillion.