If there are 10,000 people in your age bracket, and 10 of them died last year, an insurance company believes that the probability of someone in that age bracket dying this year would be
A) 0.
B) .001.
C) .0001.
D) 1,000.
B
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A commercial bank puts the funds it receives from various sources into
A) securities, cash assets and loans. B) loans, notes and coins in the bank's vault and deposits. C) reserves, deposits and loans. D) securities, cash assets and deposits.
For a given interest rate, r, which of the following expressions is smallest?
a. 1 + r. b. (1 + r/2)2. c. (1 + r/12)12 d. (1 + r/365)365.
Which of the following would increase the U.S. demand for foreign currency?
a. an increase in the U.S. demand for foreign goods b. an increase in incomes abroad c. a decrease in U.S. incomes d. a decrease in the U.S. demand for foreign goods e. an increase in U.S. real interest rates
In practice, the Federal Reserve keeps the discount rate close to the ________ rate in order to avoid large swings in borrowed reserves by banks.
A. inflation B. six-month Treasury bill C. federal funds D. prime