The current international financial system is a managed float exchange rate system because
A) exchange rates fluctuate in response to, but are not determined solely by, market forces.
B) some countries keep their currencies pegged to the dollar, which is not allowed to fluctuate.
C) all countries allow their exchange rates to fluctuate in response to market forces.
D) all countries peg their currencies to the dollar which is allowed to fluctuate in response to market forces.
A
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The interest rate charged on a Eurodollar loan will be:
a. higher than the interest rate charged on a U.S. loan. b. lower than the interest rate charged on a U.S. deposit. c. essentially equal to the interest rate charged on a Eurodollar deposit. d. lower than the London interbank offer rate. e. lower than the interest rate charged on a U.S. loan.
The federal government agency that insures demand deposits for up to $100,000 is the
a. Federal Reserve System b. Federal Deposit Insurance Corporation c. Federal Savings and Loan Insurance Corporation d. Resolution Trust Corporation e. Bank Insurance Trust Corporation
HydroGrow is considering building a new greenhouse in which to grow tomatoes. The board meets and decides that this is the right thing to do. Before they can put their plans into action, the interest rate increases. The present value of the returns from this investment project
a. is now lower than it was before, and so Hydro Grow is less likely to build the building. b. is now lower than it was before, and so HydroGrow is more likely to build the building. c. is now higher than it was before, and so HydroGrow is less likely to build the building. d. is now higher than it was before, and so HydroGrow is more likely to build the building.
Bonita's Braidworks hires workers to braid hair. The store sells the service for $25 per customer. The marginal revenue product of this store?s fifth worker is $50. The marginal product of the fifth worker is
A. 0.5 braided customers. B. 2 braided customers. C. 25 braided customers. D. indeterminate from this information.