In a market system, which of the following is a major benefit of making the firm's owners and investors exclusively shoulder the business risk?
A. Those who deeply dislike business risk will not have anything to do with the business
B. This allows firms to more easily attract labor and other suppliers of inputs
C. This reduces the business risk in the economy
D. It makes it easier for the government to monitor and manage the business risk
Answer: B
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Higher interest rates:
a) increase consumption and investment spending. b) decrease consumption and increase investment spending. c) decrease consumption and investment spending. d) increase consumption and decrease investment spending.
If you purchase a $100,000 interest-rate futures contract for 105, and the price of the Treasury securities on the expiration date is 108, your ________ is ________
A) profit; $3000 B) loss; $3000 C) profit; $8000 D) loss; $8000