If the Fed wants to lower the federal funds interest rate, it will ________ the banking system by ________ securities
A) add reserves to; selling
B) add reserves to; buying
C) remove reserves from; selling
D) remove reserves from; buying
B
Business
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An excess earnings accumulation tax is levied when ________
A) shareholders receive dividends which exceed a firm's earnings B) firms do not pay dividends in order to delay the owners' tax liability C) firms do not pay dividends to reinvest in the firm D) earnings exceed accumulated dividends over the years
Business
The price of oil is $120 per barrel. The effective lease rate and risk free rate are 5.0% and 6.0%, respectively
The constant cost of extraction is $105 per barrel and the volatility of prices is 18.0%. What is the value of an option to defer extraction? A) $30.68 B) $32.08 C) $34.56 D) $38.34
Business