A rise in deposit rates, all else constant, __________ a bank's __________ risk

The opportunity cost of going to college

A) is zero if your parents pay your tuition. B) includes wages you lose by going to school instead of working. C) is equal to the cost of tuition, room and board, and other expenses. D) is the same for all students at a particular school who pay full tuition.

Suppose the target exchange rate set by the Fed is 150 yen per dollar. If the demand for dollars permanently decreases, then the Fed

A) can permanently meet the target by selling dollars. B) can permanently meet the target by buying dollars. C) must violate both interest rate parity and purchasing power parity to permanently meet the target. D) cannot permanently maintain the target rate.