The price of a financial asset should be equal to
A) the face value of the asset divided by the interest rate.
B) the present value of payments to be received from owning that asset.
C) the face value of the asset.
D) the present value of the sum of the coupon payments and the interest rate.
B
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Economists will always reach the same conclusion in their positive analyses
Indicate whether the statement is true or false
A huge 50 percent off sale on golf clubs is advertised for next week. What happens this week in the market for golf clubs?
A) The supply of golf clubs decreases. B) The demand for golf clubs increases. C) The demand for golf clubs decreases. D) The supply of golf clubs increases. E) The demand for and the supply of golf clubs decreases.
As cities grew and markets developed, life, fire and death insurance companies emerged to manage risks and help groups of individuals during disasters
Indicate whether the statement is true or false
According to economists, when two people make exactly the opposite decision
A) one of them is acting irrationally. B) each person evaluates the situation according to his/her individual self-interest. C) one of them is acting out of spite. D) one of them should compromise.