Liquidity refers to
A) the number of times a dollar changes hands in the creation of GDP in an economy.
B) the number of shares of stock a corporation issues.
C) the ease with a stock can be traded for a bond.
D) the ease with which a financial security can be traded for cash.
D
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To decrease the money supply using the reserve requirements, what would the Fed typically do?
A) let each bank get less currency from the Treasury B) raise the reserve requirement for banks C) reduce the reserve requirement for banks D) make each bank voluntarily set its own reserve levels
The table shows the PPF of an island community. Choose the best state-ment
A. This community has enough resources to produce 2 pounds of fish and 36 pounds of berries. B. This community cannot produce 2 pounds of fish and 36 pounds of berries because this combination is inefficient. C. This community will waste resources if it produces 2 pounds of fish and 22 pounds of berries. D. This community can produce 2 pounds of fish and 30 pounds of berries but this combination is inefficient.
For a good that is a luxury, demand
a. tends to be inelastic. b. tends to be elastic. c. has unit elasticity. d. cannot be represented by a demand curve in the usual way.
Per capita GDP will definitely fall when
A. Population increases. B. The labor force decreases. C. The population growth rate exceeds the economic growth rate. D. GDP decreases.