The coupon rate is the percentage of
A. profits distributed to bondholders.
B. profits distributed to stockholders.
C. the face value of the bond that is paid out regularly to the bondholder.
D. the assets of the corporation that is paid out regularly to each stockholder.
Answer: C
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The expectation of future devaluation causes a balance of payments crisis marked by
A) a sharp rise in reserves and a fall in the home interest rate below the world interest rate. B) a sharp fall in reserves and an even bigger fall in the home interest rate below the world interest rate. C) a sharp fall in reserves and a rise in the home interest rate above the world interest rate. D) a sharp rise in reserves and an even greater rise in the home interest rate above the world interest. E) a sharp rise in reserves and a rise in the home interest rate to the level of the world interest.
A good example of perfect price discrimination is
A) selling concert tickets to individuals on the street corner. B) buying concert tickets at the ticket window. C) selling concert tickets at the ticket window. D) buying a concert ticket on the street corner.