The total amount of consumer surplus and producer surplus is at its maximum when
A. the government imposes a price floor that is higher than the market clearing price.
B. consumers and producers are allowed to trade at the market clearing price.
C. the government imposes a price ceiling that is lower than the market clearing price.
D. free market exchanges do not exist.
Answer: B
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If you receive a dollar return of 6 percent on a one-year Korean bond that yields 10 percent annually, this means that between the purchase date and the time of maturity:
a. the Korean won (KRW) has depreciated 4 percent against the U.S. dollar. b. the dollar price of the Korean won (KRW) has risen by 10 percent. c. the percentage change in the dollar per Korean won exchange rate is 6 percent. d. the dollar proceeds from the Korean bond are 4 percent higher than the initial dollar investment. e. the dollar has depreciated 16 percent against the Korean won.
It is the role of ________ to transfer funds from savers to borrowers
A) the Federal Reserve B) the federal government C) an economy's financial system D) corporate governance