A bank's return on assets (ROA) is calculated by dividing:
A. the bank's assets by its net worth.
B. the bank's assets less its net profit after taxes by its net worth.
C. the bank's net profits after taxes by its assets.
D. the bank's net worth by its assets.
Answer: C
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According to the Bureau of Economic Analysis, household disposable income fell by 0.3 percent of August, 2012. If all else remains the same, what is the likely impact of this fall on the real interest rate?
A) The real interest rate will rise. B) The real interest rate will fall. C) A change in household disposable income will have no impact on the real interest rate. D) The impact on the real interest rate is ambiguous.
The principal-agent problem suggests that
A) principals and agents always have the same goals. B) principals and agents will never have the same goals. C) principals and agents are more likely to have the same goals if the principal gives the agent flexibility to make his own decisions. D) principals and agents are more likely to have the same goals if the agent's pay is tied to satisfying the principal's goals.
Which of the following is the best example of an oligopolistic industry?
A. smartphone manufacturing B. public utilities C. convenience stores D. book publishing
Refer to the figure above. If the exchange rate is fixed above E yuan per dollar:
A) both the yuan and dollar are undervalued. B) the dollar is overvalued and the yuan is undervalued. C) both the yuan and dollar are overvalued. D) the dollar is undervalued and the yuan is overvalued.