Investing all your money in one company is an example of:
A. risk diversification.
B. risk pooling.
C. risk aversion.
D. None of these statements is true.
D. None of these statements is true.
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Which of the following tools does the Fed use to pursue its objectives?
A) It influences short-run and long-run interest rates. B) It provides loans to new firms and businesses at extremely low rates of interest. C) It determines the efficient level of government spending. D) It influences market prices through price ceilings and price floors.
Why would the government create monopoly power by granting a firm a patent that prevents other firms from competing with the patent holder?
A main argument for investing in US securities is the:
A. low rate of interest B. high rate of interest. C. low risk of owning them. D. varied time frame of payment for different types of securities.
If you are traveling in China and you purchase a meal that costs 140 yuan and the current exchange rate is 7 yuan to the dollar, then the price of the meal in U.S. currency is
A. $200. B. $20. C. $10. D. $2.