When the interest rate on alternative investments rise, it becomes costly for the bondholders to retain their bonds with them
a. True
b. False
Indicate whether the statement is true or false
True
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Given the currencies below, which was not replaced by the Euro?
A) German mark B) Irish pound C) British pound D) French franc
All of the following were reasons that the Fed increase the required reserve ration in 1936 EXCEPT:
A) concerns over the possibility of future inflation B) to eliminate the high level of excess reserves C) fears that the economy was overheating D) concerns over a speculative bubble
Dan bought $10,000 of stocks in Orange, a fruit company. Gump invested $10,000 in a mutual fund that included Orange in its portfolio, while Bubba bought Orange's bonds worth $10,000 . If Orange makes a huge profit, which of the following would be true? a. Both Dan and Gump will make profits on their respective investments, while Bubba will suffer a loss. b. Gump will earn more profits on his
investment than either Dan or Bubba. c. Dan will earn more profits on his investment than either Gump or Bubba. d. All three will earn the same amount of profit since they each have invested the same amount.
Which of the following correctly describes the difference between M1 and M2?
a. M1 includes currency, coins, gold and silver, whereas M2 does not contain gold and silver. b. M1 is made up of currency, traveler's checks, and money in checkable accounts, whereas M2 contains M1 plus savings deposits, small-denomination time deposits, and money market mutual funds. c. M1 is limited to currency, whereas M2 contains M1 plus travelers checks and money in checkable accounts. d. M1 includes currency and traveler's checks, whereas M2 contains M1 plus money in checking accounts.