Abercrombie & Fitch wants to raise $8 million to finance the construction of a new store, and the company wishes to raise the funds through direct finance. Which of the following methods could it use?
A) It could sell $8 million in bonds. B) It could borrow $8 million from a bank.
C) It could issue $8 million in stocks. D) It could choose either A or C.
D
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Which would be easier to reverse? For Denmark, which now pegs its national currency to the euro, to choose monetary autonomy and abandon its peg, or for Italy to switch back from the euro to the lira?
A) Italy, because all it has to do is cash euros for lire B) Italy, because it can change over to an electronic payments system C) Denmark, because it would only have to return all the euros in its treasury D) Denmark, because it would not have to change its currency, accounting structure, nor reprint domestic currency
The Federal Reserve influences the level of interest rates in the short run by changing the
A) demand for money through changes in reserve requirements. B) supply of money through open market operations. C) supply of money through changes in stock market operations. D) demand for money through open market operations.