A system in which the value of currency issued by the government is based entirely on public faith that the currency will be acceptable in trade is
A. a fiduciary system.
B. a socialistic system.
C. a private property system.
D. a Gresham system.
Answer: A
Economics
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A contractionary monetary policy can reduce real GDP if expectations are formed rationally and monetary policy is
A) combined with expansionary fiscal policy. B) carried out in total secrecy. C) publicly announced and credible. D) combined with contractionary fiscal policy.
Economics
Which of the following represents the equation that would be used to determine the yield to maturity of a three-year fixed payment loan of $1400 which has payments of $500 per year?
A) $1400 = $500/(1+i) + $500/(1+i)2 + $500/(1+i)3 B) $1400 = $500/(1+i)3 C) i = (1400-500)/1400 D) $1400 = $500/(1+i) + $500/(1+i)2 + $500(1+i)3 + 1400/(1+i)3
Economics