Crowding in occurs when government spending improves business expectations about the future and leads to higher business investment spending
a. True
b. False
Indicate whether the statement is true or false
True
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On the island of Yap, 5 canoes have a value of one stone wheel known as a fei. What function of money do fei serve in this example?
A. store of value B. medium of exchange C. medium of deferred payment D. unit of account
Country risk analysis involves a consideration of only economic factors
Indicate whether the statement is true or false
The Fed is often considered the bankers' bank because it
a. demands much more currency than it has available b. no longer has a monopoly on printing paper currency c. lowers the discount rate in order to restrict the money supply d. holds banks' reserves, provides banks with currency and loans, and clears their checks e. refuses to use its power of open market operations when a quorum of state-chartered bankers petitions it
Calculate cumulative losses or gains if you buy (long) 4corn futures contracts @ $5.96/bushel one day and settlement prices will be at $5.50/bushel corn on the later day you evaluate your position. Initial and maintenance margins for corn are $2,700 and $2,000 per contract. Compute gains or losses and then compare your computed number to the following possible answers.
A. A loss of $9,200. B. A gain of $9,200. C. A gain of $10,800. D. A loss of $10,800.