The forward exchange market:
a. Is a market for current deliveries but future payments.
b. Handles transactions for individuals or companies who would like to lock in now the price of future exchange rate payments or receipts.
c. Is a market with no default risk.
d. Provides sufficient liquidity for almost any transaction with a maturity up to 5 years and amount up to $1.9 trillion a day.
e. Is called "forward" because the dealers are likely to ask you out for a date.
.B
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The Bank of the United States did not:
a. act as a lender of last resort. b. help collect customs bonds. c. carry on foreign exchange operations. d. hold most of the U.S. Treasury deposits. e. The Bank of the United States engaged in all of these activities.
When measuring GDP, economists count only the values of final goods and services because
a. the final value is taxable b. adding the values of intermediate products is too difficult a task c. the value of all intermediate products is automatically included in the value of those final goods d. intermediate products are overpriced e. the final cost is the selling price, which is what economists want to know
John is planning ahead for retirement in a two-period world. When John is young he will earn $1 million, and when John is old and retired he will be given $50,000 from Social Security. If the interest rate between the two time periods is 7 percent, what is the slope of John's budget constraint when considering the consumption possibilities between the two periods if consumption when young is
graphed on the horizontal axis and consumption when old is graphed on the vertical axis? a. -0.89 b. -1.05 c. -1.07 d. -1.12
Explain what the profit-maximizing combination of resources is for the perfectly competitive firm
What will be an ideal response?