Which of the following is an example of a financial derivative?
A) An option to purchase stock in the future
B) A share of stock in Microsoft
C) A U.S. government bond
D) Monetary gold
A
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The magnitude of the slope of the indifference curve between steak and lobster is called the marginal rate of substitution
Indicate whether the statement is true or false
The revenue a government gains from issuing money is
A) interest. B) rent. C) seignorage. D) the national dividend. E) the inflation tax.
In the United States, when the outflow of dollars to pay for our imports of goods from Japan exceeds the inflow of dollars earned by our exports to Japan, typically
a. the dollar appreciates b. the United States can buy back some of its assets that are held by the Japanese c. this is merely a statistical discrepancy because the trade with Japan (exports and imports) must net out to zero d. the United States can use its reserves of yen to cover the difference e. the Japanese can borrow the needed dollars through the foreign exchange market
The most frequently used tool of monetary policy is
A. the discount rate. B. reserve requirements. C. open market operations. D. moral suasion. E. credit controls.