One benefit of a swap compared to futures and options is that they
A) promote liquidity.
B) reduce the risk for both the buyer and seller.
C) can be better tailored to meet the needs of market participants.
D) can involve financial instruments and not just commodities.
C
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Which of the following is the relationship among excess reserves, required reserves, and total reserves?
a. total reserves = required reserves - excess reserves b. excess reserves = total reserves/required reserves c. total reserves = excess reserves + required reserves d. total reserves = excess reserves - required reserves e. excess reserves = required reserves - total reserves
The conventions of national income accounting imply that saving and investment are equal for the economy as a whole and for individual households and firms
a. True b. False Indicate whether the statement is true or false
Which of the following is a correct definition of marginal cost (MC)?
a. It is the added cost that results from hiring one more employee. b. It is the increase in the average cost that results from producing one more unit of a good. c. It is the decrease in profits that results from selling another unit of a good. d. It is the cost per unit of a good produced -- i.e., total cost divided by quantity. e. It is the added cost that results from producing one more unit of a good.
New classical economists build their theories upon
A) adaptive expectations. B) inflexible wages and prices. C) rational expectations. D) the assumption that it takes a long time for markets to achieve equilibrium values.