In comparing the yield to maturity on a Treasury bill with the yield on a discount basis on the same bill, we can say that the yield to maturity
A) will always be greater than the yield on a discount basis.
B) will always be less than the yield on a discount basis.
C) will always be equal to the yield on a discount basis, provided the holding period is the same as the number of years to maturity.
D) rises whenever the yield on a discount basis falls.
A
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Suppose a cup of coffee at the campus coffee shop is $2.50 and a cup of hot tea is $1.25 . Suppose a student's beverage budget is $20 per week. Suppose the student simply prefers more caffeine to less and that the tea sold has the same amount of caffeine as the coffee. The student will buy
a. all tea. b. all coffee. c. a mix of coffee and tea. d. quantities that cannot be determined from the information given here.
Which of the following statements best describes the relationship between a stronger currency and exports?
a. A stronger euro discourages exports by a European firm because it makes the costs of production in the domestic currency higher relative to the sales revenues earned in another country. b. A stronger euro encourages exports by a European firm because it makes the costs of production in the domestic currency higher relative to the sales revenues earned in another country. c. A stronger euro discourages exports by a European firm because it makes the costs of production in the domestic currency lower relative to the sales revenues earned in another country. d. A stronger euro encourages exports by a European firm because it makes the costs of production in the domestic currency lower relative to the sales revenues earned in another country.
The federal budget process begins when federal agencies submit their budget requests to the:
A. Treasury Department. B. Council of Economic Advisors (CEA). C. Office of Management and Budget (OMB). D. Congressional Budget Office (CBO).
Figure 12.1 shows the market for a successful price-fixing arrangement (cartel) between two identical firms. When the two firms act like one and charge the same price, the market price will be ________ and each firm will produce and sell a quantity of ________.
A. $10; 200 B. $10; 100 C. $5; 500 D. $5; 250