Answer the following statement(s) true (T) or false (F)
1. Retained earnings means a corporation puts profits back into the company instead of paying them as dividends.
2. The term securities refers to real estate and cash.
3. Banks, mutual funds, savings and loans, and insurance companies are all types of financial intermediaries.
4. The total value of saving for an economy must be greater than the total value of investment.
5. Public saving is the amount of income the government has left over after paying for its spending.
1. True
2. False
3. True
4. False
5. True
You might also like to view...
Consumer surplus
A. is the difference between the maximum price consumers are willing to pay for a product and the lower equilibrium price. B. rises as equilibrium price rises. C. is the difference between the maximum price consumers are willing to pay for a product and the minimum price producers are willing to accept. D. is the difference between the minimum price producers are willing to accept for a product and the higher equilibrium price.
In the context of a controlled experiment, consider the simple linear regression formulation = 0 + 1 + . Let the be the outcome, the treatment level, and contain all the additional determinants of the outcome. Then:
A) the OLS estimator of the slope will be inconsistent in the case of a randomly assigned Xi since there are omitted variables present. B) Xi and ui will be independently distributed if the Xi be are randomly assigned. C) β0 represents the causal effect of X on Y when X is zero. D) E(Y X = 0) is the expected value for the treatment group.
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and net nonreserve-related international borrowing/lending in the context of the Three-Sector-Model?
a. The GDP Price Index falls, and net nonreserve-related international borrowing/lending becomes more negative (or less positive). b. The GDP Price Index rises, and net nonreserve-related international borrowing/lending becomes more negative (or less positive). c. The GDP Price Index falls, and net nonreserve-related international borrowing/lending becomes more positive (or less negative). d. The GDP Price Index and net nonreserve-related international borrowing/lending remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
The era of "trust-busting" took place in the years
A. before World War I. B. after World War I. C. before World War II. D. after World War II.