The main objective of financial liberalization is ________
A) to encourage financial innovation
B) to improve the allocation of financial capital
C) to discourage volatility in financial markets
D) to reduce the likelihood of a credit boom
B
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The price effect is smaller when there:
A. are fewer firms. B. are more firms. C. is more demand. D. is less demand.
Explain why contracts are beneficial to markets.
What will be an ideal response?
Figure 8.3 shows a firm's marginal cost, average total cost, and average variable cost curves. At Q = 100, the average fixed cost is:
A. $30. B. $40. C. $50. D. $60.
Moral hazard is a barrier to financing global growth because
A. if investors have trouble identifying high-risk firms they may be unwilling to give money to creditworthy firms. B. firms sometimes have trouble determining whether they need funds or not. C. of the differences between financing using loans, portfolio investment and foreign direct investment. D. there is the possibility that the funds are used for riskier behavior than the lender agreed to.