A bank that makes most of its long-term loans at adjustable interest rates is:
A. reducing both interest rate and credit risk.
B. increasing credit risk and reducing interest rate risk.
C. increasing both interest-rate and credit risk.
D. reducing credit risk and increasing interest-rate risk.
Answer: B
You might also like to view...
An omitted variable is a variable that:
A) is purposely left out as it does not aid an economic analysis. B) does not cause other variables in a study to change when it changes. C) is removed from a study as it can lead to the problem of reverse causality. D) has been left out, and if included, would explain why the variables considered in a study are correlated.
Suppose you are the manager of Good Smells, a home fragrance firm. To make your fragrance, you purchase orange peels from orange juice manufacturers. If the demand for orange juice increases, this will cause the production of orange juice peels to ________ and the price of orange juice peels to ________.
A) decrease; rise B) increase; rise C) decrease; fall D) increase; fall
Noah is an unpaid stay-at-home father who is not currently searching for paid work. Pete is a full-time student who is not looking for a job. Who is included in the labor force by the Bureau of Labor Statistics?
a. only Noah b. only Pete c. both Noah and Pete d. neither Noah nor Pete
Assume that the government of a nation prohibits producers from extracting crude oil from some domestic oil fields. Which of the following will be witnessed in the market for crude oil?
a. The domestic and world price of crude oil would remain unaffected. b. The domestic price of crude oil would increase. c. Oil import from the world market would decline. d. The world price of crude oil would increase.