By hedging a portfolio, a bank manager

A) reduces interest-rate risk.
B) increases reinvestment risk.
C) increases exchange-rate risk.
D) increases the probability of gains.


A

Economics

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Average variable cost is at a minimum at the same amount of output at which

A) average product is at a maximum. B) marginal product is at a maximum. C) average product is at a minimum. D) marginal product is at a minimum.

Economics

Which of the following would cause the equilibrium price of white bread to decrease and the equilibrium quantity of white bread to increase?

A) a decrease in the price of flour B) an increase in the price of rye bread, a substitute for white bread C) an increase in the price of butter, a complement for white bread D) an increase in the price of flour

Economics

If the market price is $5 and you are currently producing at a level where average total cost is $3 and falling, you should

a. b or c, it doesn't matter b. shut down c. produce only enough to cover variable costs d. produce where MR = MC e. produce until the average total cost and average revenue are equal

Economics

Consider the following cost information for a monopolist: its MR = $15, its MC = $23, and it is producing 9 units of output. Which of the following statements is correct?

a. The monopolist should produce and sell 9 units of output. b. The monopolist should increase production of output. c. We need more information to decide if the firm needs to produce. d. The monopolist should not produce this output because MR < MC.

Economics