A share of Ford Motor Company stock is an example of:
A. a financial instrument without risk.
B. a non-standardized financial instrument.
C. a non-standardized financial instrument since their prices can differ over time.
D. a standardized financial instrument.
Answer: D
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In performing which of its primary functions does money solve the problem of the double coincidence of wants?
A) medium of exchange B) unit of account C) store of value D) barter system E) money supply
An increase in price causes:
A. a decrease in total revenue due to the price effect. B. an increase in total revenue due to the price effect. C. an increase in total revenue due to the quantity effect. D. an increase in quantity demanded.
A closed economy is one that
a. uses tariffs. b. uses quotas to restrict trade. c. uses exchange controls. d. does not trade with other nations.
Which of the following is an example of U.S. foreign direct investment?
a. A U.S. based mutual fund buys stock in Eastern European companies. b. A U.S. citizen builds and operates a coffee shop in the Netherlands. c. A Swiss bank buys a U.S. government bond. d. A German tractor factory opens a plant in Waterloo, Iowa.