The interest rate on a bond is
A) the difference between the face value and the bond price, expressed as a percentage of the face value.
B) the difference between the face value and the bond price, expressed as a percentage of the bond price.
C) the ratio of the face value and the bond price, expressed as a percentage.
D) the difference between the face value and the yield, expressed as a percentage of the bond price.
Answer: B) the difference between the face value and the bond price, expressed as a percentage of the bond price.
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Because it is small relative to the market, a perfectly competitive firm faces an inelastic demand curve for its output
a. True b. False
Which of the following statements concerning speculators is true?
a. There is no risk involved in speculative activity. b. They simultaneously buy and sell a currency in different markets. c. They hope to profit by trading a currency at a different exchange rate later. d. Their actions do not affect exchange rates. e. Their actions are exactly like those of arbitrageurs.