Author Question: All of the following are problems cited by Warren Buffet as problems with derivatives not traded on ... (Read 177 times)

rlane42

  • Hero Member
  • *****
  • Posts: 594
All of the following are problems cited by Warren Buffet as problems with derivatives not traded on exchanges EXCEPT
 
  A) they are thinly traded which makes it difficult to determine their value.
  B) firms do not set aside reserves against potential losses.
  C) they involve substantial counterparty risk.
  D) they were not flexible enough due to lack of standardization.

Question 2

In real business cycle theory, the persistence of shocks to total factor productivity is justified by
 
  A) the fact that some capital depreciates every period.
  B) the behavior of Solow residuals.
  C) the fact that Taylor rules have been used in post-war United States.
  D) the fact that capital takes some time to build.



kxciann

  • Sr. Member
  • ****
  • Posts: 356
Answer to Question 1

D

Answer to Question 2

B



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question


 

Did you know?

Critical care patients are twice as likely to receive the wrong medication. Of these errors, 20% are life-threatening, and 42% require additional life-sustaining treatments.

Did you know?

The U.S. Preventive Services Task Force recommends that all women age 65 years of age or older should be screened with bone densitometry.

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

Did you know?

Medication errors are more common among seriously ill patients than with those with minor conditions.

Did you know?

Famous people who died from poisoning or drug overdose include, Adolf Hitler, Socrates, Juan Ponce de Leon, Marilyn Monroe, Judy Garland, and John Belushi.

For a complete list of videos, visit our video library