A stock is:
A. a payment made periodically to all shareholders of a company.
B. a financial asset that represents partial ownership of a company.
C. an agreement in which a lender gives money to a borrower in exchange for a promise to repay the amount loaned plus an agreed-upon amount of interest.
D. a promise by the bond issuer to repay the loan, at a specified maturity date, and to pay periodic interest at a specific percentage rate.
Answer: B
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The money supply would tend to fall if the Fed
A) sells bonds. B) buys bonds. C) lowers the discount rate. D) lowers reserve requirements.
Which of the following is a disadvantage of the command-and-control approach to the problem of pollution?
A) It creates licenses to pollute. B) It is undemocratic. C) It only works in societies where everyone (or almost everyone) has a high degree of environmental consciousness. D) It usually overlooks less costly ways to achieve given goals. E) It violates property rights.
A large number of U.S. firms send jobs to low-wage nations as it enables them to:
a. raise the price of their products. b. reduce their cost of production. c. get better quality products. d. obtain diversified products. e. politically dominate the economies where they are offshoring.
In what type of analysis could an increase in the tax rate lead to a decrease in tax revenues?
A. ad valorem taxation B. dynamic tax analysis C. static tax analysis D. excise taxation