Most people justifiably have mixed feelings about the financial markets because
A. they are controlled by government regulators.
B. they provide a means for the average person to become wealthy.
C. the stock market almost always falls in the long run.
D. they can experience violent swings.
Answer: D
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For a firm in a perfectly competitive market, average revenue equals
A) average cost. B) the change in total revenue. C) the market price. D) price divided by quantity.
Which of the following is not a characteristic of a public good?
a. It is scarce. b. It is not diminished in amount as additional people consume the product. c. Its benefits cannot be withheld from anyone. d. It is free. e. It yields widespread benefits.
Bank A has checkable deposits of $100 million, vault cash equaling $1 million and deposits at the Fed equaling $14 million. If the required reserve rate is ten percent what is the maximum amount Bank A could lend?
A. $14 million B. $85 million C. $15 million D. $5 million
When a Democrat is elected as president, business leaders expect that the corporate profits tax will be increased. Most likely, this will cause business firms, ceteris paribus, to
A. increase investment because the higher corporate profits tax will increase the return on any investment. B. decrease investment because they would expect lower benefits from investment. C. not change their investment plans because higher corporate profit taxes will not change the demand for their product. D. plan to increase investment in the future to compensate for the higher tax rate.