The price of a financial asset should equal the
A) present value of the payments to be received from owning the asset.
B) future value of the payments to be received from owning the asset.
C) face value of the asset less the future payments to be received from owning the asset.
D) coupon value of the asset divided by the effective interest rate at the time the asset was purchased.
A
Economics
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People hold money as opposed to financial assets because money
A) earns interest. B) earns no interest. C) is perfectly liquid. D) earns a higher return than other financial assets.
Economics
The Fed:
A. has little control over the money supply. B. serves as the central bank for the United States. C. often uses a mix of lower taxes in its fiscal policy. D. ensures commercial bank profitability.
Economics