Which of the following was designed to head off panics among market participants and forestall crashes like the ones in October 1929 and October 1987?
a. Program trading
b. Circuit breakers
c. Derivatives
d. Volatility index
b
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A speculator becomes the fixed-rate payer in an interest rate swap. He expects that
A) long rates rise. B) long rates fall. C) short rates rise. D) short rates fall.
An author who writes newspaper columns for $75 each is deciding whether to purchase a personal computer with a laser printer. She figures she'd be able to write two more columns per month than she could on her typewriter. She should
a. buy the computer if the monthly payment is less than $300 b. buy the computer regardless of its price c. not buy the computer if the monthly payment is greater than $75 d. not buy the computer regardless of the price e. buy the computer if the monthly payment is less than $150
If job promotion is viewed as a contest, then
A) tournament theory can be used to explain the use of poison pills. B) tournament theory can be used to explain the level of executive compensation. C) tournament theory can be used to explain the use of greenmail. D) tournament theory can be used to explain the use of golden parachutes.
To answer the next question, use the following graph showing the domestic demand and supply curves for a specific standardized product in a particular nation.
If the world price of this product is $1, this nation will
A. export all of the product. B. import all of the product. C. import some of the product and produce some of the product domestically. D. neither export nor import the product.