Which of the following does not appear on the asset side of a bank's balance sheet?

Which of the following statements is the MOST accurate about the Law of One Price on Scandinavian ferry lines?

A) Due to menu costs, the Law of One Price does not hold. B) To avoid arbitrage opportunities, the Law of One Price must hold. C) Transaction costs of exchanging currency causes the Law of One Price to fail. D) Transportation costs between ferry lines leads to a violation of the Law of One Price. E) The physical distance allowed the Law of One Price to hold.

The only difference between adaptive and rational expectations is that the theory of adaptive expectations assumes economic agents to be irrational

a. True b. False Indicate whether the statement is true or false