Essay on Eco Test

5275 WordsDec 12, 201122 Pages
* Question 1 4 out of 4 points | | | M2 consists ofAnswer | | | | | Selected Answer: | M1 plus amounts in savings accounts, money-market mutual funds (held by individuals), and small time deposits (under $100,000). | Correct Answer: | M1 plus amounts in savings accounts, money-market mutual funds (held by individuals), and small time deposits (under $100,000). | | | | | * Question 2 0 out of 4 points | | | A mechanism by which a short-term loan is made, allowing a shopper to purchase goods or services today and pay at a later date, is known as a ________ card.Answer | | | | | Selected Answer: | debit | Correct Answer: | credit | | | | | * Question 3 4 out of 4 points | |…show more content…
| Correct Answer: | $1,500.00. | | | | | * Question 14 0 out of 4 points | | | Consider a one-year discount bond that pays $1,000 one year from now. If the rate of discount is 7 percent, the present value of the bond isAnswer | | | | | Selected Answer: | $930.00. | Correct Answer: | $934.58. | | | | | * Question 15 4 out of 4 points | | | Which of the following would you rather have if your rate of discount is 20 percent?Answer | | | | | Selected Answer: | $300 in one year | Correct Answer: | $300 in one year | | | | | * Question 16 4 out of 4 points | | | Consider a perpetuity that pays $100 every year. If the rate of discount is 7 percent, the present value of the bond isAnswer | | | | | Selected Answer: | $1,428.57. | Correct Answer: | $1,428.57. | | | | | * Question 17 0 out of 4 points | | | According to the theory underlying the present-value formula, would you prefer to receive (a) $75 one year from now, (b) $85 two years from now, or (c) $90 three years from now, if the relevant market interest rate is 10 percent and will remain at 10 percent for the next three years?Answer | | | | | Selected Answer: | $75 one year from now | Correct Answer: | $85 two years from now | | | | | * Question 18 4 out of 4 points | | | Present value
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