Stocks and bonds are both considered securities
a. True
b. False
Indicate whether the statement is true or false
True
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After reports of the subprime mortgage crisis began to appear in the media, which of the following most likely caused housing prices to fall?
a. neoclassical theory b. cyclical expectations c. rational expectations d. Keynesian theory
Which of the following financial investments is highly liquid and has very little risk but offers a low rate of return?
a. Savings account b. Mutual fund c. Certificate of deposit d. Treasury bond
Table 14.1Refer to Table 14.1. In which market do buyers underestimate the chance of getting a lemon?
A. 1 only B. 2 only C. 3 only D. 1 and 3 only
The signaling effect leads to college graduates earning more because a college degree signals that a person has learned the required job skills.
Answer the following statement true (T) or false (F)