The screening process a bank follows for a loan applicant:
A. is based on just public information.
B. uses information that anyone can obtain, the bank can usually obtain it cheaper.
C. includes information that can be available to other firms, as well as proprietary information that only the bank would have.
D. uses only confidential information.
Answer: C
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Suppose in London £/$ = 0.5 while in New York £/SF = 0.2. The corresponding cross rate (SF/$) is
A) 2.5. B) 0.1. C) 0.4. D) 0.3.
International trade has strong effects on income distributions. Therefore, international trade
A) will tend to hurt some groups in each trading country. B) is beneficial to everyone in both trading countries. C) will tend to hurt one trading country. D) will tend to hurt everyone in both countries. E) will be beneficial to all those engaged in international trade.
Quarterly data for the years 1988-93 for the nominal federal funds interest rate and the output ratio show that the Fed
A) reacted to a high output ratio by raising the interest rate. B) reacted to a high output ratio by lowering the interest rate. C) reacted to low output ratios but not to high output ratios. D) did not react to movements in the output ratio.
In general, the amount of X-inefficiency in an industry:
A. has no relationship to the amount of competition in an industry. B. increases as the amount of competition increases. C. decreases as the amount of competition stays the same. D. increases as the amount of competition decreases.