One News Wire article in the text has the title "Fed Cuts Key Interest Rate Half-Point to 1 Percent." The Fed has most likely reduced the:
A. Discount rate.
B. Rate for purchasing bonds in the open market.
C. Prime lending rate.
D. Rate for foreign exchange.
A. Discount rate.
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Full marginal-cost pricing of water would lead to
a. More water use and higher water prices b. Less water use but no change in water prices c. Less water use and higher water prices d. Less water use and lower water prices e. More water use and lower water prices
Suppose the price of crude oil is $95 per barrel in New York and $85 per barrel in Texas, and the transaction costs for trading between the two markets are $15 per barrel. What actions should you take to arbitrage this price difference?
A) Buy oil in Texas and sell oil in NY B) Sell oil in Texas and buy oil in NY C) Buy oil in both markets and wait for higher prices D) Do not buy or sell oil in either market