The difference between a stock and a flow is
A) a stock is something measured at one point in time while a flow is something that is expressed per unit of time.
B) a stock is something measured at one point in time while a flow is something that is fixed.
C) a stock is expressed per unit of time while a flow is measured at one point in time.
D) a stock refers to the solid inventory firms have on hand while a flow refers to the liquid inventory firms have on hand.
A
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Holding other factors constant, if employers automatically enroll employees in retirement savings programs in order to overcome psychological barriers to saving, then the real interest rate will ________ and the equilibrium quantity of saving and investment will ________.
A. increase; decrease B. increase; increase C. increase; not change D. decrease; increase
Refer to the scenario above. What is the probability of picking a red ball from the box?
A) 24.65% B) 45% C) 50% D) 64%
The current supervisory practice toward risk management
A) focuses on the quality of a bank's balance sheet. B) determines whether capital requirements have been met. C) evaluates the soundness of a bank's risk-management process. D) focuses on eliminating all risk.
If the nominal interest rate is 6 percent and the rate of inflation is 2 percent, then the real interest rate is
a. -4 percent. b. 3 percent. c. 4 percent. d. 8 percent.