A lender who is worried that its cost of funds might rise during the term of a loan it has made can hedge against this rise by
A) buying futures contracts on Treasury bills.
B) selling futures contracts on Treasury bills.
C) buying call options on Treasury bills.
D) increasing the amount of money which it lends.
B
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Macroeconomics stresses
A. resource allocation and income distribution. B. inflation and unemployment. C. resource allocation and inflation. D. unemployment and income distribution.
The market where firms purchase factors of production is referred to as the
a. product market. b. resource market. c. capital market. d. foreign exchange market.
To a bank, reserves are classified as
A) an asset. B) a liability. C) equity D) a liability or an asset
When there is no other way of producing a given level of output with a smaller total value of inputs, the firm is operating at:
a) maximum profit. b) an irrelevant output. c) maximum output. d) minimum cost. e) optimal output.