The ________ is defined as the ratio of the dollar price of a basket of goods and services in the U.S., divided by the dollar price of the same basket of goods and services in a foreign county
A) real exchange rate B) ordinal exchange rate
C) nominal exchange rate D) expected exchange rate
A
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Which of the following statements is NOT true of consumer finance companies?
A) Their borrowers have higher default risk than bank customers. B) They charge higher interest rates than banks do on similar loans. C) They lend primarily to consumers. D) They are strictly regulated by state governments.
A price ceiling set below the equilibrium price is nonbinding
a. True b. False Indicate whether the statement is true or false
Lewis has $5,000 worth of bonds in Farrell’s Seed Company. Bonnie has 10,000 shares of preferred stock in the company, Jeff has 100,000 shares of common stock, and Val has 1 share of common stock. If Farrell’s Seed Company goes out of business, which obligation will it be required to meet first?
a. paying Bonnie the full value of her preferred stock b. paying Jeff the dividends on his common stock c. paying Lewis the full value of his bonds d. paying Val the full value for her share of common stock
"The United States has fallen behind Japan and most of Europe in terms of competitiveness." Do you agree or disagree? Why?
What will be an ideal response?