Risk premiums do all of the following except
A. Help explain why banks charge different customers different interest rates.
B. Allocate limited resources only to the safest investors.
C. Compensate people who finance risky ventures.
D. Are the difference in the rates of return on risky and safe investments.
Answer: B
Economics
You might also like to view...
Which of the following formulas is used to calculate the inflation rate?
A) inflation rate = 100 × B) inflation rate = 100 × C) Inflation rate = 100 × D) Inflation rate = 100 × E) inflation rate = 100 ×
Economics
Refer to Figure 9-3. What is the area of domestic producer surplus without a quota?
A) A + B + C B) C C) A + B + C + D D) C + B
Economics