The greater the risk of nonrepayment of a loan, other things being equal
A) the longer is the repayment term.
B) the lower is the charged loan fees.
C) the higher is the rate of interest.
D) the smaller is the amount of collateral that is used.
Answer: C
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The duration of unemployment tends to
A) increase when employment increases. B) increase when business activity decreases. C) increase when the labor force shrinks. D) stay consistently the same over long periods of time.
What type of person would you expect to have the shortest indenture?
a. 13 year-old male craftsman who went to New England b. 22 year-old male laborer who went to the West Indies c. 20 year-old male farm worker who went to the South d. 21 year-old male carpenter who worked in the West Indies
Suppose that Venezuela experiences significant capital outflows after a recent election. If the nation had fixed exchange rates, what effect would these flows have had on Venezuela's reserves account and value of the Bolivar (the Venezuelan currency)?
a. Reserves account would rise and value of the Bolivar would not change. b. Reserves account would not change and value of the Bolivar would fall. c. Reserves account would fall and value of the Bolivar would not change. d. Reserves account would fall and value of the Bolivar would fall. e. Reserves account would fall and value of the Bolivar would rise.
Is the national debt a burden to future generations?
A. No, as long as foreigners own a significant share of the national debt. B. No, as long as the national debt is owned purely by U.S. citizens. C. Yes, debt is always a burden to future generations. D. Yes, unless foreigners increase their share of the national debt.