Author Question: All of the following are problems cited by Warren Buffet as problems with derivatives not traded on ... (Read 337 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?

The modern decimal position system was the invention of the Hindus (around 800 AD), involving the placing of numerals to indicate their value (units, tens, hundreds, and so on).

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Did you know?

Not getting enough sleep can greatly weaken the immune system. Lack of sleep makes you more likely to catch a cold, or more difficult to fight off an infection.

Did you know?

To combat osteoporosis, changes in lifestyle and diet are recommended. At-risk patients should include 1,200 to 1,500 mg of calcium daily either via dietary means or with supplements.

Did you know?

The Babylonians wrote numbers in a system that used 60 as the base value rather than the number 10. They did not have a symbol for "zero."

For a complete list of videos, visit our video library