An investor owns bond #1 that has a rate of return of 10 percent, but a similar bond #2 has an 11 percent return and equal risk. By selling bond #1 and buying bond #2 to earn a higher return, the investor is engaging in:

The above table shows Tammy's total utility from videos and CDs. If Tammy has $70 to spend on videos and CDs and if the price of a video is $10 and the price of a CD is $20, then the maximum utility Tammy can attain is

A) 450. B) 1280. C) 1150. D) 1200.

A commercial bank can add to its actual reserves by:

A. lending money to bank customers. B. buying government securities from the public. C. buying government securities from a Federal Reserve Bank. D. borrowing from a Federal Reserve Bank.