Which type of bond offers a relatively high interest rate to compensate for its relatively high chance of default?
a. Junk bond
b. Treasury bond
c. Municipal bond
d. Savings bond
a. Junk bond
A junk bond offers a relatively high interest rate to compensate for its relatively high chance of default.
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Which of the following is responsible for Spain's eventual decline in influence?
a. The lack of a solid foundation for its settlement efforts b. A costly war to bring the Low Countries under subjection c. The decline in gold and silver imports from America d. All of the above
If two investments are uncorrelated:
A. there is no benefit from diversification. B. there is no benefit to hedging. C. diversification reduces risk without changing the expected payoff. D. diversification reduces both risk and the expected payoff.
Explain how the relation between the real exchange rate and net exports explains the downward slope of the demand for foreign-currency exchange curve
Total revenues increase as output increases along sections of the demand curve that are:
A. downward sloping. B. price inelastic. C. upward sloping. D. price elastic.