An indication that Insurance companies anticipate adverse selection is
a. they do not require a deductible
b. they do not classify clients into different risk types according to their claim history
c. they classify clients into different risk types according to pre-existing conditions
d. they do not require a co-payment
c
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Refer to Table 9-2. In Year 2, if savings deposits had been $250 billion instead of $200 billion, M2 would have been
A) $575 billion. B) larger by $50 billion. C) smaller by $50 billion. D) unaffected.
According to purchasing-power parity, if it took 55 Indian rupees to buy a dollar today, but it took 58 to buy it a year ago, then the dollar has
a. appreciated, indicating inflation was higher in the U.S. than in India. b. appreciated, indicating inflation was lower in the U.S. than in India. c. depreciated, indicating inflation was higher in the U.S. than in India. d. depreciated, indicating inflation was lower in the U.S. than in India.