A narrow bid-asked spread on a security can be expected if
A) price fluctuations are large.
B) liquidity costs are high.
C) transactions volume is large.
D) the market is thin.
C
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Which of the following statements is correct, when the exchange rate changes from €2/$ to €1.5/$?
a. Both the euro and the dollar depreciate. b. The euro (€) depreciates. c. The euro depreciates and the dollar appreciates. d. The euro appreciates and the dollar depreciates. e. None of the above.
Ken and Traci are two woodworkers who both make tables and chairs. In one month, Ken can make 3 tables or 18 chairs, whereas Traci can make 8 tables or 24 chairs.. Given this, we know that
a. Ken has an absolute advantage in chairs. b. Ken has a comparative advantage in tables. c. Traci has an absolute advantage in chairs. d. Traci has a comparative advantage in chairs.