Little Richie Lemons, a thirteen-year-old former lemonade stand owner, quit the business and now searches for an after-school job. Is he officially unemployed?
A) No, because he was never employed in the first place.
B) No, because he is under 16 years old.
C) Yes, because he is no longer self-employed.
D) Yes, because he is looking for work.
B
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Which of the following statements are NOT true about Eurocurrency markets?
A) Covered interest arbitrage in Eurocurrency markets is typically very profitable. B) Eurocurrency interest rate differentials are often in equilibrium with forward premiums or discounts. C) The Eurocurrency markets and forward markets fulfill similar roles for banks and firms today. D) All of these statements about Eurocurrency markets are true.
If a project's only risk is diversifiable,
A) only half the risk premium should be added to the discount rate. B) only half the risk premium should be subtracted from the discount rate. C) the risk premium should be added to the discount rate. D) the risk premium should be subtracted from the discount rate. E) no risk premium should be attached to the discount rate.