The CEOs of three firms in the airlines industry talk to each other about coordinating their ticket pricing. Which concept is exemplified?

The money supply contracts when the Fed: a. replaces worn and ripped Federal Reserve notes. b. sells government securities

c. borrows from the U.S. Treasury. d. purchases equities in major U.S. corporations.

Investing all your money in one company is an example of:

A. risk aversion. B. risk diversification. C. risk pooling. D. None of these statements is true.