« previous next »

Author Question: A lender who is worried that its cost of funds might rise during the term of a loan it has made can ... (Read 44 times)

CBme

  • Hero Member
  • *****
  • Posts: 548
on: Jun 30, 2018
A lender who is worried that its cost of funds might rise during the term of a loan it has made can hedge against this rise without eliminating the chance to profit from a decline in the cost of funds by
 
  A) buying futures contracts on Treasury bills.
  B) selling futures contracts on Treasury bills.
  C) buying put options on Treasury bills.
  D) buying call options on Treasury bills.

Question 2

Suppose that data for a particular economy over time suggest that its aggregate demand curve is both steep and shifts frequently. We might reasonably infer that ________.
 
  A) the central bank has an activist emphasis on the stability of economic activity
  B) wages and prices are remarkably flexible
  C) policy lags are quite long
  D) all of the above
  E) none of the above


marict

  • Sr. Member
  • ****
  • Posts: 304
Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

A


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

Did you know?

There are over 65,000 known species of protozoa. About 10,000 species are parasitic.

Did you know?

In 2006, a generic antinausea drug named ondansetron was approved. It is used to stop nausea and vomiting associated with surgery, chemotherapy, and radiation therapy.

The Hippocampal Formation and Long-Term Potentiation The Hippocampal Formation and Long-Term Potentiation
Long-Term Potentiation and Long-Term Depression Long-Term Potentiation and Long-Term Depression
Cost of Copying for the Follower Country Cost of Copying for the Follower Country
Human Development (Full Term) Human Development (Full Term)
Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price. Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price.
No payments were made on a $2,598 loan during its three-year term. What was the annually ... No payments were made on a $2,598 loan during its three-year term. What was the annually ...
Video: Summation - defined, spatial, temporal & AP generation or not

For a complete list of videos, visit our video library