Investing all your money in one company is an example of:
A. risk aversion.
B. risk diversification.
C. risk pooling.
D. None of these statements is true.
Answer: D
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Which of the following describes the difference between the market demand curve for a perfectly competitive industry and the demand curve for a firm in this industry?
A) The market demand curve is downward sloping; the firm's demand curve is a vertical line. B) The market demand curve is downward sloping; the firm's demand curve is a horizontal line. C) The market demand curve is a horizontal line; the firm's demand curve is downward sloping. D) The market demand curve can not have a constant slope; the firm's demand curve has a slope equal to zero.
Flexible exchange rates are determined by
A) the government of the exporting country. B) the government of the importing country. C) the forces of supply and demand. D) the IMF.