An asset is said to be riskless if:

A) it can be easily converted into cash. B) its value does not change from day to day.
C) its value is more likely to fall in future. D) it offers a positive rate of interest.


B

Economics

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Assume that production from a automobile manufacturer caused acid rain. If the government imposed a tax on the manufacturer equal to the cost of the acid rain, the government's action would

A) externalize the externality. B) eliminate all acid rain. C) force the manufacturer to move production to another location. D) internalize the externality.

Economics

Sweet Treats sells its extra-large cupcakes for $10 each and the firm has a constant marginal cost of $6 per cupcake, which is equal to its (constant) average total cost. If Sweet Treats does not sell a cupcake the day it is produced, it is sold as day-old for $4. Sweet Treats should hold the number of cupcakes in inventory that makes the probability of selling that quantity of cupcakes or more

equal to ________. A) 0.50 B) 0.66 C) 0.75 D) 0.33

Economics

If one dollar is initially equal in value to one euro and demand for euros increases, then each dollar will be worth

a. more than one euro, and European imports will be cheaper in the United States b. less than one euro, and European imports will be more expensive in the United States c. more than one euro, and European imports will be more expensive in the United States d. less than one euro, and European imports will be cheaper in the United States e. the same as the euro, and there will be no change in the values of imports or exports

Economics

What is the relationship between household saving and taxes?

a. taxes = income - consumption - household saving b. household saving = income + taxes - consumption c. taxes = income + consumption + household saving d. household saving = consumption + income - taxes e. taxes = household saving - income + consumption

Economics