Which of the following is not a nonsensical headline?
a. British perpetuities about to mature.
b. Disney issues new bonds with term of 7 percent.
c. Corporate bonds currently pay higher interest rates than government bonds.
d. Standard and Poor's judges new junk bond to have very low credit risk.
c
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If a check was written on Bank A for $100 and Bank B presented the check to Bank A for payment, what will happen to the required reserves for each respective bank after payment is made?
A) Both banks will see a decrease in their required reserves. B) Bank A's required reserves increase; Bank B's decrease. C) Bank B's required reserves increase; Bank A's decrease. D) Both banks will see an increase in their required reserves.
Omega Custom Cabinets produces and sells custom bathroom vanities. Assume that labor is the only input that varies for the firm. The firm has determined that if it hires 10 workers, it can produce and sell 20 vanities per week. If it hires 11 workers, it can produce and sell 22 vanities per week. It sells each vanity for $800, and it pays each of its workers $1,000 per week. Which of the
following is correct? a. For the 11th worker, the marginal profit is $600. b. For the 11th worker, the marginal revenue product is $2,000. c. The firm is maximizing its profit. d. If the firm is employing 11 workers, then its profit would increase if it cut back to 10 workers.