Countries that trade a small amount with a single foreign country tend to float their exchange rate to the foreign country's currency

Credit risk is the risk that

A) an insufficient number of borrowers will apply for loans or credit. B) interest rates will rise after a loan has been granted. C) interest rates will fall after a loan has been granted. D) borrowers might default on their loans.

In an auction where the bidders values are $740, $700, $660, $650, $400, $325 and $300, the highest three bidders decide to form a bid-rigging cartel. What would the winning bid have been without the cartel?

a. $741 b. $701 c. $661 d. $631