Which of the following must be true of a commodity for it to be used as money?
a) Its value must be easy to determine.
b) It must not be divisible.
c) It must not be durable.
d) It must not be readily accepted by many people.
Ans: a) Its value must be easy to determine.
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Business cycles in the United States after World War II have been
a. more severe than before the war. b. less severe than before the war. c. the same as the pre-war cycles. d. easier to predict than the pre-war cycles.
J.C. Penney found that its headquarters staff did not understand regional fashion trends. Consequently, the company invested in TV communications technology that allowed New York buyers to communicate with local store managers. This communication was meant to
A. effectively use local specific knowledge. B. effectively use local general knowledge. C. encourage risk taking by local stores. D. encourage knowledge transfer from corporate headquarters to local stores.
In which of the following situations is expansionary monetary policy most effective?
A. The Fed raises the reserve requirement. B. The Fed sells more securities. C. The Fed raises the discount rate. D. Banks are willing to lend excess reserves.
The process of developing local industries to manufacture goods to replace imports is known as
A. import promotion. B. import substitution. C. export favoritism. D. export promotion.