One reason that people hold money is to pay for unexpected car repairs and other unpredictable expenses. This motive for holding money is called:
a. transactions demand.
b. precautionary demand.
c. speculative demand.
d. noncyclical demand.
b
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A tariff is
A. a voluntary agreement to restrict exports. B. a tax on imported goods. C. a subsidy on domestically produced goods. D. a government-imposed restriction on the quantity of a specific good that can be imported into the country.
When international banks conduct daily trades of different currencies valuing in the millions of dollars
A) they are using the spot market. B) they are using the forward market. C) they are using the futures market. D) they are using the stock markets.
The following data describe government spending and revenue
(a) How much is the budget deficit? (b) How much is the primary budget deficit? (c) How much is the full-employment budget deficit? (d) How much is the current deficit? (e) How much is the current primary deficit?
The risk of financing a project by issuing common stock is borne by
A. the issuing firm only. B. the stockholders only. C. both the issuing firm and the stockholders. D. the government.