Under the Basel Accord, assets and off-balance sheet activities were sorted according to ________ categories with each category assigned a different weight to reflect the amount of ________
A) 2; adverse selection
B) 2; credit risk
C) 4; adverse selection
D) 4; credit risk
D
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Governments sometime create an excess supply of a product by setting a minimum price that is greater than the equilibrium price, resulting in a permanent excess supply of the product. This is known as a price ceiling
Indicate whether the statement is true or false
If the German interest rate is 4% and the U.S. interest rate is 5%, what is the expected change in the value of the dollar in terms of the euro?
A) 1% B) -1% C) 9% D) -9%
Consider a competitive industry and a price-taking firm that produces in that industry. The market demand and supply functions are estimated to be: Demand: Qd = 10,000 ? 10,000P + 1.0MSupply: Qs = 80,000 + 10,000P ? 4,000PIwhere Q is quantity, P is the price of the product, M is income, and PI is the input price. The manager of the perfectly competitive firm uses time-series data to obtain the following forecasted values of M and PI for 2015:
= $50,000 and 
I = $20The manager also estimates the average variable cost function to beAVC = 3.0 ?
0.0027Q + 0.0000009Q2Total fixed costs will be $2,000 in 2015. The marginal cost function is: A. SMC = 3.0 ? 0.0054Q + 0.0000018Q2 B. SMC = 3.0 ? 0.0027Q + 0.0000009Q2 C. SMC = 3.0 ? 0.00135Q + 0.00000045Q2 D. SMC = 3.0Q ? 0.0027Q2 + 0.0000009Q3 E. none of the above
Answer the following statement true (T) or false (F)
1) About two-thirds of all federal spending is for national defense. 2) A progressive tax takes relatively more from the rich than it does from the poor. 3) The benefits-received principle of taxation is used to support corporate and personal income taxes. 4) Sales taxes are proportional in relation to income because the same tax rate applies regardless of the size of a purchase.