Use the following statements to answer this question: I. Corporate paper rates are typically less than one percent higher than Treasury bill rates. II. Treasury bill rates may be viewed a short-term, risk-free rates
A) I and II are true.
B) I is true and II is false
C) II is true and I is false
D) I and II are false
A
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When someone sells a bond at a discount, the holder of the bond earns ________ with the purchase
A) a capital gain B) a capital loss C) market value D) interest
A Keynesian model that is consistent with fully flexible wages and prices is based upon the notion of
A) cooperation failures. B) coordination failures. C) collaboration failures. D) decreasing returns to scale.
Which of the following is not a transfer payment?
a. a $100 check from your parents to you b. a birthday present from your roommate c. your grandmother's monthly Social Security check d. your uncle's unemployment insurance check e. the interest payments on the savings bond your dad bought last month
You go on vacation to Mexico and take $1,000 with you. During your time in Mexico, the peso appreciates in value relative to the dollar. It follows that
A) you will be able to buy more goods and services in Mexico after the peso appreciates. B) you will be able to buy fewer goods and services in Mexico after the peso appreciates. C) the purchasing power parity theory is incorrect. D) Mexican workers, paid in pesos, will be able to buy fewer goods and services in Mexico after the peso appreciates.