The Fed holds its euro reserves primarily in the form of:
A. a weighted portfolio of European government bonds.
B. German government bonds.
C. international mutual funds.
D. euro currency.
Answer: B
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The effect of a recession on a company like Whirlpool Corporation is such that
A) the decline in sales is more short-lived as compared to firms that do not produce durable goods. B) profits fall less sharply as compared to firms that do not produce durable goods. C) there is no difference in the impact of the recession on its profits as compared to firms that do not produce durable goods. D) sales decline more sharply for Whirlpool as compared to firms that do not produce durable goods.
Which of the following is a good indicator of short-term interest rates in international markets?
A) prime rate B) Treasury bill rate C) LIBOR D) Federal funds rate E) none of the above
A weakness of the market system of resource allocation is that
a. such economies tend to be stagnant b. most participants in such an economy have low standards of living c. there are no limits on an individual's freedom of action d. it does not address the problem of initial inequities in endowments e. its participants are free to act according to their desires
Which of the following statements best describes excess demand, or shortage?
a. The area between the supply and demand curves above the equilibrium point is called excess supply, or surplus. b. The area between the supply and demand curves below the equilibrium point is called excess supply, or surplus. c. The area between the supply and demand curves to the right of the equilibrium point is called excess supply, or surplus. d. The area between the supply and demand curves to the left of the equilibrium point is called excess supply, or surplus.