Liquidity
A) is the best available measure of the riskiness of an asset.
B) is a characteristic of money, and of no other asset.
C) is the ease with which an asset can be exchanged for money.
D) was declining for many financial assets during the 1990s.
C
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Economists define the labor force to include
A) people who are working. B) only people who are working full time. C) people who are not working but are actively looking for a job, and people who are working. D) all individuals of working age, regardless of whether they are working or looking for a job.
A bank faces foreign exchange risk when:
A. it has branches in other countries. B. it lends to foreign borrowers because they are less likely to repay a U.S. bank. C. it has assets denominated in one currency and liabilities in another. D. foreign governments restrict dollar-denominated payments.
Classical growth theory predicts that in the long run there will be
A) sustained increases in the productivity growth rate. B) negative economic growth. C) zero economic growth. D) positive economic growth. E) sustained increases in economic growth.
In the above figure, the efficient quantity is
A) 0 units. B) 70 units. C) 80 units. D) 100 units.