Refer to the scenario above. If the opportunity cost of time increases to $80 per hour, which of the following statements is true?
A) Maria should choose to drive as it saves her $10.
B) Maria should choose to drive as it saves her $150.
C) Maria should choose to travel by train as it saves her $10.
D) Maria should choose to travel by train as it saves her $150.
C
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Using the table above, if the current market value of the dollar is 125 francs
A) investor A holds dollars, but B and C hold francs. B) investor A holds francs, but B and C hold dollars. C) all three investors hold francs. D) all three investors hold dollars.
Holding large amounts of bank capital helps prevent bank failures because
A) it means that the bank has a higher income. B) it makes loans easier to sell. C) it can be used to absorb the losses resulting from bad loans. D) it makes it easier to call in loans.