Stock prices are
A) based less on the current profitability of firms than on their expected future profitability.
B) based equally on the current profitability of firms and on their expected future profitability.
C) not based on the current profitability of firms or on their expected future profitability.
D) based more on the current profitability of firms than on their expected future profitability.
A
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Slope is calculated as the
A) change in the vertical variable. B) change in the vertical variable divided by the change in the horizontal variable. C) change in the horizontal variable divided by the change in the vertical variable. D) the vertical axis divided by the horizontal axis.
According to physicians, people should drink eight full glasses of water per day to maintain optimal health; it is now common knowledge. But people don't necessarily follow doctor's orders because
A) only they know what they need. B) people value other goods in addition to optimal health. C) we only really need a few ounces of water each day. D) nobody considers optimal health to be desirable.
Credit unions ________
A) acquire access to funds by accepting deposits then use these monies in lending to households and firms B) are a special type of mutual fund C) raise funds by selling commercial paper then lend these funds to consumers D) acquire access to monies through the payment of premiums by employees
If a bank's return on equity remains constant, but the ratio of bank assets to bank capital increases:
A. the bank's assets and capital must have increased by the same percentage. B. the bank's return on assets must have decreased. C. the bank's return on assets must have increased. D. the bank must be unprofitable.