A bond is
A) a legal claim to a part of a corporation's future profits that includes voting rights.
B) a legal claim to a part of a corporation's future profits that does not include voting rights.
C) a legal claim against a firm, providing a fixed annual coupon payment and a lump-sum payment at maturity.
D) a nonlegal promise to provide an annual payment to the holder when the corporation makes profits.
C
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Most favored nation (MFN) status means that a country treats another country
A) better than its other trading partners. B) the same as its other trading partners. C) worse than its other trading partners. D) any way it chooses since it is the "most favored nation." E) None of the above.
Which of the following events will help to burst an asset price bubble?
A) Speculative demand for the asset quickly declines. B) Speculative demand for the asset quickly increases. C) New information leads buyers to doubt that prices will continue to increase in the future. D) A and C are correct
Answer the following statements true (T) or false (F)
1. If banks had $10 million in legal reserves, $110 million in check able deposits, and a 10 percent reserve requirement, they would have to reduce check able deposits by $10 million or increase reserves by $1 million. 2. A decrease in reserve requirements immediately increases the money supply. 3. The total check able deposits a bank may have can be determined by dividing its reserves by the reserve requirement. 4. The most liquid measure of the U.S. money supply is M1. 5. Federal Reserve banks stand ready to convert dollars into gold upon demand.
A recent study shows that between 2010 and 2015, the consumption of smart television sets has increased dramatically in the city of Maricary. If the consumer price index does not capture changes in the prices of these consumption goods, it will fail to reflect the actual purchases of an average consumer in this city because of the: a. quantity bias
b. quality bias. c. new goods bias. d. substitution bias.