A one-year discount bond with a face value of $10,000 that is currently selling for $9400 has an interest rate of
A) 3.10%.
B) 6%.
C) 6.38%.
D) 60%.
C
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Cartels are typically subject to cheating by their members because
A) if the other firms stick to the agreement, a firm can increase its profits by cutting its price. B) barriers to entry do not exist so new entrants will join. C) the U.S. Justice Department will punish any cartel agreement before the cartel has had a chance to operate. D) product differentiation allows the firms in the cartel to cheat.
In the figure above, the lowest 20 percent of all households own ________ percent of all wealth, the next lowest 20 percent own ________ percent of all wealth and the richest 20 percent own ________ percent of all wealth
A) 20; 20; 20 B) 20; 40; 100 C) 5; 15; 40 D) 5; 20; 60
If something is a medium of exchange, then it:
a. serves as a yardstick for measuring the value of other goods. b. is a means of holding wealth for the future. c. has an absolute value in gold. d. is widely accepted as payment for purchases.
Higher U.S. interest rates usually cause:
A. no change in foreign investment in the United States. B. a drop in the U.S. dollar exchange rate. C. foreign capital to enter the United States. D. foreign capital to leave the United States.