Functioning securities exchanges are located in I. Brazil II. China III. Russia IV. South Korea
A) I, II, III and IV
B) I, II and IV only
C) I and IV only
D) II, III, and IV only
Answer: A
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Which of the following happens when the expected inflation rate rises??
A. ?Both the demand and supply curve for bonds shift upward. B. The demand curve for bonds shift to the left. C. ?The supply curve for bonds shift to the right. D. ?The expected real interest rate rises.
Tying compensation incentives to performance targets decreases the likelihood that the goals of responsibility centers, managers, and the entire organization will be well coordinated
Indicate whether the statement is true or false
Repair and maintenance costs for manufacturing equipment are product costs
Indicate whether the statement is true or false
Which of the following premiums is NOT factored into the price of a long-term Treasury bond?
A) an inflation-risk premium B) a maturity premium C) a real risk-free interest rate D) a default-risk premium