The value of $100 left in a savings account earning 5% a year, will be worth what amount after ten years?
A. $160.50
B. $150.00
C. $162.89
D. $159.84
Answer: C
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Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. A bundle of goods that Country B could not make would be:
A. (300 iPods, 500 tablets). B. (400 iPods, 250 tablets). C. (200 iPods, 750 tablets). D. (100 iPods, 1,000 tablets).
Answer the following statement(s) true (T) or false (F)
1. A borrower sells bonds, and a lender buys bonds. 2. A change in the price of bonds causes a change in interest rates. 3. A bond that promises a series of payments on different dates is a perpetuity. 4. It would be irrational to promise to make an infinite number of payments in exchange for a finite amount of goods. 5. The present value of a perpetuity falls when the interest rate rises.
In 2008, several banks had a:
A. solvency problem, and the Fed kept them all from going bankrupt. B. confidence problem, and would not lend enough to keep from going bankrupt. C. reserve problem, and did not have enough funds on hand to lend to keep from going bankrupt. D. solvency problem, and eventually went bankrupt as a result.
On paper, the Bank of Canada has ________ instrument independence and ________ goal independence when compared to the Federal Reserve System
A) less; less B) less; more C) more; less D) more; more