Suppose I have $1,000 to put into a one-year CD. Community Bank offers 5 percent interest, Floatbank offers 5.25 percent, and Squidbank offers 5.40 percent. If I place my money in Squidbank, my economic profit on the investment is
a. 5.40 percent
b. 5 percent
c. 0.40 percent
d. 0.15 percent
e. -0.40 percent
D
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Which of the following occurrences would NOT shift the demand curve for U.S. dollars in the foreign exchange market?
A) an increase in the U.S. exchange rate B) an increase in the expected future U.S. exchange rate C) an increase in U.S. interest rates D) an increase in foreign interest rates
A tax of $5 per airplane ticket is _____
a. a unit tax b. an ad valorem tax c. an income tax d. a value-added tax
If X and Y are substitutes, the demand curve for X will shift to the right when the price of Y decreases
a. True b. False Indicate whether the statement is true or false
If there is a surplus of loanable funds, the quantity demanded is
a. greater than the quantity supplied and the interest rate will rise. b. greater than the quantity supplied and the interest rate will fall. c. less than the quantity supplied and the interest rate will rise. d. less than the quantity supplied and the interest rate will fall.