What is the interest rate on a 12-month U.K. certificate of deposit if the dollar return on the certificate is 4 percent and the dollar has appreciated 9 percent against the British pound?
a. 15 percent
b. 13 percent
c. 9 percent
d. 5 percent
e. 4 percent
b
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Refer to the Article Summary. In 2015, the European Union initiated the BRRD program, where the burden of bailing out troubled banks is being placed on bank creditors, shareholders, and possibly depositors
If this program were to confiscate funds from bank deposits to assist troubled banks, the possibility of a bank run, a situation in which ________, would likely increase. A) many depositors simultaneously decide to withdraw money from a bank. B) a majority of the bank's loans go into default all at once. C) a majority of the shareholders in a bank decide to sell off all their shares of stock. D) a bank stops paying interest on all of its interest-bearing accounts.
Which of the following is not true of minimum wages?
A. They have little effect on highly skilled workers. B. They raise incomes of unskilled laborers who have jobs. C. They prevent some willing workers from getting jobs. D. They decrease wages for unskilled workers.
In the short run, a decrease in aggregate demand will decrease:
A. the price level and have no effect on real domestic output. B. both real output and the price level. C. the price level and increase the real domestic output. D. the real domestic output and have no effect on the price level.
According to the rational expectations hypothesis, unpredictable shocks explain the existence of
A. the federal deficit. B. the national debt. C. unemployment. D. trade barriers.