Which type of U.S. government security is a kind of zero-coupon security?
A) Federal funds note
B) U.S. Treasury note
C) U.S. Treasury bill
D) U.S. Treasury bond
C
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To know whether the dollar is overvalued, we need to know
A) what foreign currency the dollar is being compared with. B) the real interest rate in the United States and the real interest rate in whatever country's currency the dollar is being compared with. C) the equilibrium exchange rate between the dollar and the foreign currency the dollar is being compared with. D) whether Federal Reserve monetary policy is expansionary or contractionary. E) There is not enough information to answer the question.
The balance of payments consists of the
A. current account, capital account, and official reserve transactions account. B. capital account, official reserve transactions account, and recent account. C. current account, capital account, and gold flows. D. current account, official reserve transactions account, and monetary account.
Adverse selection is a situation in which asymmetric information results in low-quality goods or low-quality consumers being squeezed out of transactions because they are unable to demonstrate their quality.
Answer the following statement true (T) or false (F)
The most likely impact of an unanticipated increase in the money supply is
a. an increase in the real interest rate, which in turn stimulates investment and GDP. b. a decrease in the real interest rate, which in turn stimulates investment and GDP. c. a reduction in the general level of prices, which will increase the disposable income of households. d. an improvement in technology, which will stimulate both output and employment.