Adverse selection is
a. when people act differently because they are insured
b. when more risk averse people want to be insured more
c. when people at greater risk want to be insured more
d. when your guess at a test question is wrong
c
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According to the U.S. Treasury
A) creditors do not have to accept cash in payment of debts. B) firms do not have to accept cash as payment for goods and services. C) the government will not accept cash in payment of taxes. D) U.S. dollars must be accepted as payment for any good or service sold in the United States.
When a foreign investor buys a bond issued in the United States
A) the balance on the capital account increases. B) the balance on the current account increases. C) the balance of trade increases. D) the balance on the financial account increases.