When choosing how much money they wish to hold in their financial portfolios, people trade off money's advantage of liquidity against the opportunity cost of holding money rather than other financial assets
a. True
b. False
Indicate whether the statement is true or false
True
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The Federal Trade Commission is an agency charged with
A) regulating interstate commerce. B) enforcing product safety laws. C) regulating international commerce. D) enforcing antitrust laws.
Why is adverse selection more likely in financial markets when interest rates rise?
A) The remaining borrowers are more likely to be risky. B) Higher interest rates are likely to hurt the economy. C) If firms have to pay higher interest rates, they may choose to use the funds differently than they first intended. D) Banks eliminate risky borrowers by raising interest rates.
An industry with a strong union (e.g., UAW)
a. will increase wages in the nonunion sector of the industry b. will increase employment for union workers when wages increase c. can force employers to hire all unions members regardless of the wage d. can increase the demand for union workers by increasing turnover and reducing productivity e. can bargain for wages that are greater than the market's equilibrium wage
A recent college graduate who is looking for her first job would be considered _____
a. a discouraged worker b. underemployed c. overemployed d. unemployed e. not in the labor force