The relationship that says that the forward premium or discount is equal to the interest differential is
A) interest rate parity.
B) purchasing power parity.
C) the Fisher equation.
D) the term structure of interest rates.
A
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In a market economy, what provides potential investors with reliable information about the financial performance of a firm?
A) contracts B) insurance C) patents D) accounting rules
Looking ahead at how the customer is more likely to react, what price should the shopkeeper charge?
a. High price b. Low price c. Offer the good for free d. A compromised price between the high and the low price
According to the equation of exchange, if real GDP is $2 trillion and the money supply is $0.5 trillion, the velocity of money: a. must be 4
b. must be 1/4. c. must be 4 trillion. d. must be 1/4 trillion. e. cannot be determined unless we know the price level.
A floating exchange rate is where the rate is
a. determined by the domestic market for money. b. set by the government as a hard peg c. set by the government as a soft peg. d. determined in the foreign exchange market.