If a coupon bond has a "face value" of $1000, it means that
A) the original purchaser paid $1000 for it.
B) each purchaser must pay $1000 for it.
C) it was purchased for at least $1000 and perhaps more.
D) the holder will be paid $1000 when the bond matures.
E) the holder will be paid $1000 plus accumulated interest when the bond matures.
D
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A . If Orde Windgate withdraws $4,00 . from the First Bank of Chicago and deposits it in a new account at the Second Bank of Chicago, explain how much money the Second Bank of Chicago can create if the legal reserve requirement is 10 percent. b. Will this transaction increase the amount of money that the banking system as a whole can create? Explain
If prices of goods and services quickly adjust to demand shocks, then
A. Firms would find it difficult to produce at their optimal output rates B. Output rates would quickly adjust to changes in demand C. Firms would find it easier to produce at their optimal output rates D. The economy would experience severe short-run fluctuation