Before it went bankrupt in 2008, Lehman Brothers investment bank had a leverage ratio of 30 which meant it was:
A. not very leveraged.
B. highly leveraged.
C. in debt more than it was worth.
D. highly hedged.
Answer: B
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Recently, many developing countries throughout the world have begun to institute policies that seek to
A) liberalize international trade by lowering trade barriers. B) reduce dependence on international trade by raising trade barriers. C) reduce dependence on international trade by instituting laws that call for buying only domestically made goods. D) Two of the above.
Open market operations tries to target
A) the Federal government budget deficit. B) product prices. C) stock prices. D) the federal funds rate.
Suppose you found Eurodollars in a public park and reported it to the police. After 10 days, the police called to say that no one claimed those Eurodollars. They're now yours. The police have never seen Eurodollars before and ask: "What are these things?" You tell them it's money. "What kind of money?" they ask. You reply
a. M1 money b. M2 money c. specie d. near money e. asset money
Use the following choices regarding the various types of unemployment to describe this situation. Tired of the same job, day-in and day-out, Delores quit her job and is looking for more challenging work.
A. frictional unemployment B. structural unemployment C. natural unemployment D. cyclical unemployment