The interest rate that the Federal Reserve pays banks on the reserves they hold is called the
a. open-market rate.
b. discount rate.
c. preference rate.
d. None of the above are correct.
d
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Which of the following would contribute to a positive trade balance for a country?
A) having tourists visit the country B) importing textiles C) having foreign residents buy the government bonds of the country D) importing financial services
Suppose a fishing boat currently brings 10,000 fish to market and earns a profit of $40,000 when the price of fish is $8 . Suppose the boat dealer had overcharged the boat owner for the boat. Upon receiving a refund of $25,000 from the dealer, what will happen to the ATC of producing 10,000 fish?
a. increases by $25 b. increases by $2.50 c. does not change d. decreases by $2.50 e. decreases by $25
What is an advantage of using options instead of forward contracts when hedging against exchange-rate risk?
What will be an ideal response?
A computer is an example of human capital
a. True b. False Indicate whether the statement is true or false