Congress considers a bill that would eliminate the mortgage interest deduction for individuals. For the housing industry, this is an example of

A) tax risk.
B) interest rate risk.
C) business risk.
D) event risk.

Answer: A

Business

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Suppose you saw a set of quoted prices from a U.S. bank and a French bank such that you could borrow dollars, sell the dollars in the spot foreign exchange market for euros, deposit the euros for 90 days, and make a forward contract to sell euros for

dollars and make a guaranteed profit. Would this be an arbitrage opportunity? Why or why not?

Business

Over the past 50 years, the earnings gap between whites and other racial and ethnic groups has decreased significantly

Indicate whether the statement is true or false

Business