On the settlement date of a futures contract:
A. the future's price is equal to the price of the underlying asset.
B. the future's price is always below the price of the underlying asset.
C. the future's price may be above or below the price of the underlying asset but not equal to it.
D. the future's price is always above the price of the underlying asset.
Answer: A
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Which of the following institutions is responsible for check processing?
a. U.S. Department of the Treasury b. Comptroller of the Currency c. Federal Reserve d. Federal Deposit Insurance Corporation
A tax wedge:
A. refers to the difference in the price the buyer pays and the price the seller keeps. B. only occurs in markets when the tax is placed on sellers. C. only occurs in markets when the tax is placed on buyers. D. only occurs in markets when taxes are placed on large corporations.
The macroeconomic policy planner's job is made difficult because of
a. inaccurate multiplier estimates. b. timing problems. c. disagreements over potential GDP. d. uncertain forecasts. e. All of the above are correct.
The state of Massachusetts requires all citizens to purchase medical insurance or face a monetary penalty when filing their taxes. The penalty is significantly less than the average annual insurance premium. Moreover, the state requires insurance companies to issue policies to anyone who applies, regardless of their health at the time of application. Which of the following examples describes the
inherent adverse selection problem? a. Tricia purchases an insurance policy through her employer and visits her doctor for annual check-ups. b. Sue purchases insurance only after learning that she has cancer. c. Mike pays the penalty rather than purchasing insurance because it is cheaper for him than paying insurance premiums and he is generally in good health. d. Both b and c are correct.