Exchange rates are determined in
A) the money market.
B) the foreign exchange market.
C) the stock market.
D) the capital market.
B
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If, in response to an increase in the price of pineapples, the quantity of pineapples demanded decreases, then economists would describe this as
A) an decrease in demand. B) a decrease in quantity demanded. C) a change in consumer income. D) a decrease in consumers' taste for pineapples.
A manager in an investment center is offered a potential investment that would have an ROA of 15 percent. After the investment, it would make up 20 percent of his total portfolio. Currently, he makes 20 percent on his portfolio, though the company requires only 12 percent. Which of the following is true?
A. He will not make the investment because the company prefers 12 percent. B. He will make the investment because a larger portfolio is always better than a smaller portfolio. C. He will not make the investment because it lowers his overall return to 19 percent. D. He will make the investment since it is 3 percent greater than the company's required return.