Which of the following is necessarily true of coupon bonds?
A. The price exceeds the face value.
B. The price is the sum of the present value of coupon payments and the face value.
C. The price is equal to the coupon payments.
D. The coupon rate exceeds the interest rate.
Answer: B
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Answer the following statement true (T) or false (F)
Deposit insurance has been __________ in achieving its goals of preventing runs and __________
A) successful; protecting small investors B) successful; protecting large investors C) unsuccessful; protecting small investors D) unsuccessful; protecting large investors
Deflation is an overall:
A. rise in prices in the economy. B. decline in prices in the economy. C. rise in prices in the economy, excluding those with historically volatile price changes. D. decline in prices in the economy, excluding those with historically volatile price changes.
The fact that barriers to entry are low in competitive price-searcher markets means that if current firms are making economic losses,
a. these losses will remain in the long run because no firms can exit the market. b. current firms will exit the market, causing the demand curves that face the remaining firms to increase. c. new firms will enter the market, causing the demand curves that face the existing firms to decrease. d. new firms will enter the market, causing no change in the demand curves that face the existing firms in the market.