A advantage of using swaps to hedge interest-rate risk is that swaps
A) are less costly than futures.
B) can be written for long horizons.
C) are not subject to default risk.
D) are more liquid than futures.
B
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All of the following represent government spending as a part of aggregate demand except for:
A. Flood control. B. National parks. C. Police and fire protection. D. Social Security checks
Refer to the scenario above. What is the present value of the benefits of buying the extended warranty?
A) $33.04 B) $39.82 C) $52.10 D) $60
Which organization is responsible for managing the nation's money supply?
A) Fort Knox B) The United States Congress C) The United States Treasury D) The Federal Open Market Committee E) The American Economic Association
The table above gives some of the entries in the national income and product accounts. The government sector has a ________, and the private sector has a ________
A) surplus of $50 billion; surplus of $25 billion B) deficit of $50 billion; surplus of $25 billion C) surplus of $50 billion; deficit of $25 billion D) deficit of $50 billion; deficit of $25 billion