A bond is essentially:
A. an equity.
B. a loan.
C. a stock.
D. a derivative.
Answer: B
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If a fall in the price of good A increases the quantity demanded of good B
A) A and B are substitutes. B) A and B are complements. C) A is a substitute for B, but B is a complement to A. D) B is a substitute for A, but A is a complement to B.
Suppose the economy is at full employment and firms become more pessimistic about the future profitability of new investment. Which of the following will happen in the short run?
A) The aggregate demand curve will shift to the right. B) Prices will rise. C) Output will rise. D) Unemployment will rise.
Property rights often remain poorly defined because of _____
a. difficulty enforcing ownership once defined b. government fiat c. strong incentives towards the status quo d. monopolies
Which of the following is a liability to a bank?
A) total reserves B) transaction deposits C) government securities D) loans