When the demand and supply of grapes both increase at the same time, we can safely predict that the:
a. price of grapes will fall
b. price of grapes will rise.
c. quantity of grapes exchanged will fall.
d. quantity of grapes exchanged will rise.
d
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What are the five characteristics that make an asset suitable to be used as a medium of exchange?
What will be an ideal response?
If View Your World, a high-end window manufacturer, has contracted with a supplier to produce their glass, this is an example of ________.
A) outsourcing B) forward integration C) backward integration D) a market transaction
Which of the following is an example of how incentive structures contributed to the collapse of investment banks?
a. The bonus structures of most executives were tied to short-term profitability. b. The rating agencies acted independently in assigning ratings to mortgage-backed securities and had no incentive to understate the risks. c. Mortgage-backed securities were closely scrutinized in order to minimize risk and obtain higher ratings. d. Despite SEC regulations, investment banks kept leverage ratios low in order to increase profits.
The U.S. central bank is a financial institution that:
A. has the sole right to accept deposits and make loans. B. sets borrowing and lending in a country. C. has the sole right to issue currency. D. determines what assets will back a currency.