Refer to Table 4.2. With which scenario will you be indifferent about investing in either U.S. or Japanese bonds?
A) A
B) B
C) C
D) D
C
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When a bank borrows from the Federal Reserve the bank
A) receives a new deposit of legal reserves at the Federal Reserve. B) creates a new checkable deposit payable to the Federal Reserve. C) normally will do so because it has excess reserves. D) loses reserves equal to the amount of the loan.
Pure capitalism and a pure command system represent
a. two different ways of answering the basic economic questions b. two names describing the same method of answering the basic economic questions c. the only two ways of answering the basic economic questions d. the most efficient ways to answer the basic economic questions e. none of the above
In an unfettered free market, price is ____ predictor(s) of an event
A) the best B) only of many C) not a very useful D) a marginal
If the annual return on a property is $30,000, and the interest rate is 20 percent, the present value is $6,000
Indicate whether the statement is true or false