Which of the following financial assets is most likely to have a higher amount of risk than the others?
A. Stocks
B. Mutual funds
C. Savings accounts
D. Bonds
Answer: A
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The argument that it is necessary to protect a new industry to enable it to grow into a mature industry that can compete in world markets is known as the
A) national security argument. B) diversity argument. C) infant-industry argument. D) environmental protection argument. E) national youth protection argument.
Which of the following is true of monopoly?
a. There are no barriers to entry. b. The firm is a price taker. c. There are no close substitutes for the product being produced. d. There are many firms in the industry. e. The firm faces a horizontal demand curve.
Changing the discount rate
a. provides a signal that the Fed wants to encourage an expansion or contraction of the money supply. b. is usually done in large increments in order to have a rapid impact on business activity. c. is primarily remedial rather than preventive. d. is a function of the Federal Reserve Banks without any review by the Board of Governors.
Assuming a constant nominal GDP, would the velocity of M1 equal the velocity of M2? Explain.
What will be an ideal response?