A discount bond resembles a simple loan in that
A) the interest on neither is taxable.
B) the borrower repays in a single payment.
C) both represent assets to the borrowers who issue them.
D) both have par values greater than their face values.
B
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Individuals tend to trade because
A) they place different values on their property. B) they expect to gain more than they give u
A resident of the U.S. just purchased a share of stock on the London stock market. As far as the U.S. balance of payments this purchase will
A) have no influence on the balance of payments since stock is not a good or service. B) be entered as a unilateral transfer in the current account. C) be entered in the capital account. D) require special drawing rights.
Identify at least two problems a borrower would face if banks were not required to disclose the information that they are currently required to make available.
What will be an ideal response?
List and define any two of the costs of high inflation