Question 1

Two reasons savers keep deposits at banks are to:

Accepted Answer

A) secure mortgages and to purchase stocks. 
B) earn a return on their savings and to facilitate making payments. 
C) lower interest rates and to increase the money supply. 
D) equalize loan supply and demand and to earn interest. 
A) secure mortgages and to purchase stocks. 
B) earn a return on their savings and to facilitate making payments. 
C) lower interest rates and to increase the money supply. 
D) equalize loan supply and demand and to earn interest.

Question 2

If the United States has a $300 billion trade deficit, then there must be:

Accepted Answer

A) net capital inflows of $300 billion. 
B) net capital inflows of -$300 billion. 
C) no capital inflows or capital outflows. 
D) net capital outflows of $300 billion. 
A) net capital inflows of $300 billion. 
B) net capital inflows of -$300 billion. 
C) no capital inflows or capital outflows. 
D) net capital outflows of $300 billion.

Question 3

Sydney purchases a newly issued, two-year government bond with a principal amount of $10,000 and a coupon rate of 6 percent paid annually. One year before the bonds matures (and after receiving the coupon payment for the first year), Sydney sells the bond in the bond market. What price (rounded to the nearest dollar)will Sydney receive for his bond if newly issued one-year government bonds are paying a 5 percent coupon rate?

Accepted Answer

A) $9,906 
B) $10,000 
C) $10,095 
D) $10,600 
A) $9,906 
B) $10,000 
C) $10,095 
D) $10,600

Question 4

When the coupon rate on newly issued bonds increases from 5 percent to 6 percent, the prices of existing bonds:

Accepted Answer

A) increase. 
B) decrease. 
C) remain unchanged. 
D) increase only if the coupon rate is less than 6 percent. 
A) increase. 
B) decrease. 
C) remain unchanged. 
D) increase only if the coupon rate is less than 6 percent.

Two reasons savers keep deposits at banks are to:

If the United States has a $300 billion trade deficit, then there must be:

When the coupon rate on newly issued bonds increases from 5 percent to 6 percent, the prices of existing bonds:

Thinking Like an Economist

Comparative Advantage

Supply and Demand

Elasticity

Demand

Perfectly Competitive Supply

Efficiency, Exchange, and the Invisible Hand in Action

Monopoly, Oligopoly, and Monopolistic Competition

Games and Strategic Behavior

An Introduction to Behavioral Economics

Externalities, Property Rights, and the Environment

The Economics of Information

Labor Markets, Poverty, and Income Distribution

Public Goods and Tax Policy

International Trade and Trade Policy

Macroeconomics: The Birds Eye View of the Economy

Measuring Economic Activity: GDP and Unemployment

Measuring the Price Level and Inflation

Economic Growth, Productivity, and Living Standards

The Labor Market: Workers, Wages, and Unemployment

Saving and Capital Formation

Money Prices and the Federal Reserve

Short-Term Economic Fluctuations: An Introduction

Spending and Output in the Short Run

Stabilizing the Economy: The Role of the Fed

Aggregate Demand, Aggregate Supply, and Inflation

Exchange Rates and the Open Economy

Filters

Exam 23: Financial Markets and International Capital Flows

Two reasons savers keep deposits at banks are to:

If the United States has a $300 billion trade deficit, then there must be:

When the coupon rate on newly issued bonds increases from 5 percent to 6 percent, the prices of existing bonds:

Thinking Like an Economist

Comparative Advantage

Supply and Demand

Elasticity

Demand

Perfectly Competitive Supply

Efficiency, Exchange, and the Invisible Hand in Action

Monopoly, Oligopoly, and Monopolistic Competition

Games and Strategic Behavior

An Introduction to Behavioral Economics

Externalities, Property Rights, and the Environment

The Economics of Information

Labor Markets, Poverty, and Income Distribution

Public Goods and Tax Policy

International Trade and Trade Policy

Macroeconomics: The Birds Eye View of the Economy

Measuring Economic Activity: GDP and Unemployment

Measuring the Price Level and Inflation

Economic Growth, Productivity, and Living Standards

The Labor Market: Workers, Wages, and Unemployment

Saving and Capital Formation

Money Prices and the Federal Reserve

Short-Term Economic Fluctuations: An Introduction

Spending and Output in the Short Run

Stabilizing the Economy: The Role of the Fed

Aggregate Demand, Aggregate Supply, and Inflation

Exchange Rates and the Open Economy

Filters