Credit risk is:
A. lower, the longer the length of the loan.
B. the risk of a borrower defaulting on a loan.
C. the risk of not being able to get a loan when your credit is good.
D. lower, the larger the amount of the loan.
Answer: B
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A decrease in liabilities will reduce a firm's accounting profit
Indicate whether the statement is true or false
Given whatever income they have, consumers make consumption choices to maximize the
a. total utility of the goods they consume b. marginal utility of the goods they consume c. average utility of each good they consume d. number of goods they buy e. prices of goods they buy
When the Fed unexpectedly increases the money supply,
a. real interest rates will tend to decline. b. the exchange rate value of the dollar will tend to appreciate. c. aggregate demand will tend to increase. d. all of the above are correct. e. both a and c are correct.
The price elasticity of demand for bread is
a. computed as the change in the price of bread divided by the change in the quantity demanded of bread. b. independent of the availability of close substitutes. c. influenced by whether consumers view bread as a necessity or luxury. d. All of the above are correct.