Author Question: Lulu purchased a security that promises to pay 50 twice a year from January 15, 2012 to January 15, ... (Read 97 times)

hbsimmons88 · **on:** Jun 29, 2018

Lulu purchased a security that promises to pay 50 twice a year from January 15, 2012 to January 15, 2016 and then pay 1,000 on January 15, 2016. The security is a debt to the company that issued it. The security is a

A) net investment to the company that issued it.
B) share of stock.
C) depreciating asset.
D) physical capital.
E) bond.

Question 2

Suppose the United States is experiencing a balance of payments deficit. To prevent the exchange rate from depreciating, the U.S. Treasury must

A) buy both dollars and foreign currency. B) sell both dollars and foreign currency.
C) sell dollars and buy foreign currency. D) sell foreign currency and buy dollars.