A discount bond selling for $15,000 with a face value of $20,000 in one year has a yield to maturity of
A) 3 percent.
B) 20 percent.
C) 25 percent.
D) 33.3 percent.
D
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When all of the available factors of production are being efficiently employed, the
A) economy is producing at a point within its PPF. B) economy is producing at a point on its PPF. C) economy is producing at a point beyond its PPF. D) PPF disappears. E) opportunity cost of changing production is infinite.
College education provides higher income for the individual but also a more productive and more educated person who will contribute to society in many ways. Higher education is an example of:
A. a nonexcludable service. B. a negative externality. C. adverse selection. D. a positive externality.
?Which of the following is correct regarding the discount rate?
a. It is the interest rate that commercial banks charge their most creditworthy customers.
b. It is the interest rate that thrift institutions charge for home mortgages
c. It is the interest rate at which depository institutions can borrow from the Federal Reserve.
d. It is the interest rate set in the market for U.S. Treasury Bills.
e. It is the prime interest rate.
Refer to the information provided in Table 25.7 below to answer the question(s) that follow.Table 25.7
Refer to Table 25.7. Great Gazoo Bank's excess reserves are
A. $100,000. B. $200,000. C. $300,000. D. $700,000.