Which of the following was NOT considered to have been a drawback of the pre-1914 gold standard?
A) It sometimes led to inflation, which several times in the late nineteenth century caused recessions in the United States.
B) Countries had little control over their domestic monetary policies.
C) Countries with trade deficits experienced deflation.
D) Changes in the world money supply were strongly influenced by gold discoveries.
A
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If you win $1 million in a lottery and are paid in installments,
a. the future value of these payments is $1 million b. the present value of these payments equals $1 million if the interest rate is zero c. the present value of these payments equals $1 million if the interest rate is 10 percent annually d. the present value of the payments exceeds $1 million if the interest rate is positive e. the future value of the payments is less than $1 million if the interest rate is negative
The market value of a bond is __________ related to the rate of interest
a. directly b. inversely c. exactly d. sometimes e. never