By taking the short position on a futures contract of $100,000 at a price of 115 you are agreeing to ________ a ________ face value security for ________
A) sell; $100,000; $115,000.
B) sell; $115,000; $100,000.
C) buy; $100,000; $115,000.
D) buy; $115,000; $100,000.
A
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The above table gives the initial balance sheet for Mini Bank. Mini Bank's actual reserve ratio equals ________
A) 25 percent B) 12.5 percent C) 33.3 percent D) 20 percent
Which of the following is true?
a. Large corporations earn profits, while smaller firms realize losses. b. Profits attract businesses to productive projects, while losses discourage them from undertaking unproductive activities. c. Profits indicate that businesses are over-charging customers, while losses suggest that they should raise customer prices. d. If corporations want to increase profits, they will always be able to do so by either increasing product prices or reducing employee wages.
You are a hotel manager and you are considering four projects that yield different payoffs, depending upon whether there is an economic boom or a recession. The potential payoffs and corresponding payoffs are summarized in the following table.ProjectBoom (50%)Recession (50%)A$20-$10B-$10$20C$30-$30D$50$50If a manager adopted both project A and B simultaneously, the variance in returns associated with this joint project would be:
A. 10. B. 500. C. 30. D. 0.
In Figure 1.1, which labeled points represent the existence of unemployment?
A. only A B. only B and C C. only D D. A, B, and C