If the cash in an account falls below the maintenance margin, then a margin call is required to replenish the margin account to the maintenance margin account
a. true
b. false
Ans: b. false
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Suppose managers of an art auction house are going to auction a painting that is believed to be painted by a famous artist. If the managers of the auction are able to provide evidence that the painting was created by the famous artist, the participants in the auction will have ________ confidence in their own valuation of the painting and will submit ________ bids.
A) less; lower B) less; more C) more; lower D) more; higher
Increases in the fraction of national debt held by foreigners _____ the burden of debt service on future generations _____
a. decrease; because it is easier for the borrowing nation to default on the debt b. decrease; but may make the country more vulnerable to foreign intervention c. decrease; because debt servicing accomplished by increases in the money supply is not as inflationary as it would be if all debt were held domestically d. increase; because taxes to repay the debt are collected within the country but more interest payments on the debt are sent outside e. increase; because foreign bondholding pushes up interest rates at the date of issue, increasing crowding out
The Fed holds its euro reserves primarily in the form of:
A. a weighted portfolio of European government bonds. B. German government bonds. C. international mutual funds. D. euro currency.
A shortage of competition is central to the entrepreneur in the ________ theory of profit.
A. risk taker B. innovator C. monopolist D. exploiter of labor