If you have $1,000 in an account that offers "3x" margin, you can effectively buy:
A. $3,000 worth of stocks.
B. $1,000 worth of stocks.
C. $3,000 worth of guaranteed government bonds.
D. $2,000 worth of guaranteed government bonds.
Answer: A
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Last year your job at the university cafeteria paid you $9 an hour and the price of a ten-minute long distance call to your girlfriend in California was $4 . This year your cafeteria job pays $9.90 per hour and the ten-minute phone call now costs $4.10 . You are clearly
a. worse off because of inflation. b. worse off because the phone call is now relatively more expensive. c. better off because your wage rate went up. d. better off because the phone call now costs less work.
If a country raises its budget deficit, then in the market for foreign-currency exchange
a. supply shifts left. b. supply shifts right. c. demand shifts left. d. supply shifts right.