Modern hedge funds typically make investments that involve
A) hedging.
B) speculating.
C) acquiring safe, short-term assets.
D) focus on stocks instead of bonds.
B
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According to the theory of demand,
a. a change in the consumer’s income or wealth changes the entire demand relationship b. the consumer’s willingness to pay is also called the demand price c. demand price measures the marginal benefit (MB) of consuming another unit of the good d. a change in product price changes quantity demanded e. all of the above
The low point of economic activity during a business cycle is called the
A) trough. B) recession. C) peak. D) failure.
All of the following are consequences of adverse selection on good firms EXCEPT
A) the cost of external financing increases. B) firms need to rely more on internal funds. C) firms need to rely more on accumulated profits. D) firms will only be able to attain financing from the government.
Suppose that the Fed undertakes an open market sale, selling $3 million worth of securities to a bank. If the required reserve ratio is 11%, checkable deposits (or the money supply), would _______________ by ________________ million, assuming that there are no cash leakages and that banks hold zero excess reserves
A) rise; $27 B) decline; $33 C) decline; $27 D) rise; $33