Suppose you own a savings bond that will pay you $100 in 7 years. If the annual interest rate is 2%, what is the present value of the savings bond?
a. $27.91
b. $87.06
c. $93.64
d. $87.06
b
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Jane is a 25 year old, full-time student. She works part time in her school library and is paid $7 an hour. She is considered to be
A) not in labor force. B) not in the working-age population because she is in college. C) employed. D) unemployed. E) in labor force but not working.
A major reason for the development of money market mutual funds in the 1970s was that: a. open-market operations were suspended
b. bank deposit rates were capped at levels below market interest rates. c. money market funds offered more flexible checking privileges than banks. d. they were considered to be safer than banks. e. money markets did not exist until 1970.
Experience with the Phillips curve since the 1970s has shown that the:
a. curve can be used as a reliable model to guide public policy. b. relationship between the inflation rate and the unemployment rate moves in a clockwise direction. c. curve is not stable. d. inflation rate and the unemployment rate are equal.
When someone buys a bond, they give up the bond's price in exchange for:
A. right of ownership. B. future income. C. current income. D. stock.