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Part 1 of 1 - 100.0 Points
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P
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As interest rates fall, the prices
of existing bonds will:
A
.
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B
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You need to have $35,000 on
hand to buy a new Lexus five
years from today. To achieve
that goal, you want to know
how much you must invest
today in a certificate of deposit
guaranteed to return you 3%
per year. To help determine
how much to investment today,
you will use:
A
.
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B
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3
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2
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5
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P
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If you expect the inflation
premium to be 2%, the default
risk premium to be 1% and the
real interest rate to be 4%,
what interest would you expect
to observe in the marketplace
under the simplest form of
market interest rates?
A
.
4
%
B
.
7
%
C
.
2
%
D
.
1
%
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4
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The price level of goods and
services may be expressed as
the ratio of _____________.
A
.
G
D
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N
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B
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5
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P
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John deposits $2,000 per year
at the end of the year for the
next 20 years into an IRA
account that pays 6%. How
much will John have on deposit
at the end of 20 years?
A
.
$
6
7
,
5
2
0
B
.
$
7
3
,
5
7
2
C
.
$
8
1
,
9
9
0
D
.
$
7
5
,
6
8
6
Q
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P
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n
6
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2
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n
t
s
The most important savings
surplus unit in the economy is:
A
.
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C
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Q
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7
5
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P
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2
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t
s
Economists use a
___________________
framework to explain how the
prices and quantities of goods
and services are determined in
a free-market economic
system.
