All of the following are names for bonds receiving low ratings EXCEPT:
A) junk
B) garbage
C) high yield
D) speculative
B
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A monopoly can be formed by a bandwagon effect. Which of the following products would most closely match the bandwagon effect?
A) The Atlanta Braves baseball club B) The Dell Computer C) The Apple Watch D) The Chevrolet Corvette
Which of the following is NOT true about the equilibrium price?
A) the price where a change in quantity supplied occurs B) the price where the demand curve intersects the supply curve C) the price where quantity demanded equals quantity supplied D) the price where there is neither excess quantity demanded or excess quantity supplied
The following is an example of adverse selection
a. A majority of those applying for well paid jobs are well qualified b. More reckless drivers opt for cars with fewer safety devices c. Individuals living in less secure neighborhoods want to buy more insurance d. Individuals with a strong family history of heart diseases opt to buy less insurance
The banking system currently has $200 billion of reserves, none of which are excess. People hold only deposits and no currency, and the reserve requirement is 4 percent. If the Fed raises the reserve requirement to 10 percent and at the same time buys $50 billion worth of bonds, then by how much does the money supply change?
a. It rises by $600 billion. b. It rises by $125 billion. c. It falls by $2,500 billion. d. None of the above is correct.