A sum of money to be received in the future is worth more than a sum of money today.

Eurobanks are

A) all European Banks. B) all non American banks. C) banks that accept deposits denominated in Eurocurrencies excluding Eurodollars. D) banks that accept deposits denominated in Eurocurrencies including Eurodollars. E) banks that do not take U.S. dollars.

Johnny has allocated $30 toward coffee and tea and feels that coffee and tea are perfect substitutes. Due to differences in caffeine levels, his MRS of tea for coffee equals two. If coffee and tea sell for the same price, Johnny will

A) spend all $30 on tea. B) spend all $30 on coffee. C) spend $20 on coffee and $10 on tea. D) be indifferent between any bundle of coffee and tea costing $30.