Economics Questions
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Under the efficient markets hypothesis, for news about a company's prospects to have a large impact on the price of the company's stock, the news must
If a corporation pays a dividend, which group receives priority in receiving the dividend?
If the price level in Japan increases more rapidly than the price level in Britain, we would expect
Which of the following has the largest impact on short-run movements in exchange rates?
When market participants have rational expectations, the deviation of the expected price from the actual future price is
Which of the following would cause the nominal exchange rate to depreciate?
Which of the following represents the equation that would be used to determine the yield to maturity of a corporate bond with a face value of $1000, price of $1100, coupon rate of 50%, and maturity in three years?
The supply of loanable funds would decline (supply curve would shift left) due to
A company that retains a high bond rating during a recession in which many other companies see their bond ratings cut will experience
In the bond market, the seller is considered to be
The term structure is usually defined with yields on which securities?
Suppose that a small economy that had previously been closed becomes open. If its real interest rate had previously been below the world real interest rate, we would expect that
If the expected gains on stocks rise, while the expected returns on bonds do not change, then
If there is an excess demand for bonds at a given price of bonds, then
Since Germany is a large open economy, the increase in German borrowing and investment in what was formerly East Germany in the early 1990s resulted in
In an article, "Preparing for the Next Black Swan" (Wall Street Journal, Aug 21, 2010), the point is made that diversification may be insufficient in protecting one's portfolio during a "Black Swan" event. Why may this be true?
According to the Fisher effect, an increase in expected inflation results in:
If the federal government decreases its spending and doesn't decrease taxes, the bond supply shifts to the
Unless otherwise indicated, when economists or investors refer to the interest rate on a financial asset, they are referring to the:
If an investor is certain that market interest rates will decline in the future, which of the following will she be most likely to purchase?