Filters
Question type

Study Flashcards

Suppose you deposit $5,000 in a bank that pays 10 percent interest compounded twice a year. The actual annual interest rate you receive is


A) 10 percent.
B) 10.25 percent.
C) 11 percent.
D) 12 percent.

E) All of the above
F) B) and C)

Correct Answer

verifed

verified

A major purpose of usury laws is to make more funds available to low-income borrowers. Economic analysis suggests that usury laws


A) are effective in achieving this goal.
B) allocate available funds to high-income borrowers.
C) have no impact on the allocation of funds between high-income and low-income people.
D) help low-income people only when the legal interest rate is above the market rate.

E) A) and C)
F) A) and B)

Correct Answer

verifed

verified

List the four sources of uninsurable risk.

Correct Answer

verifed

verified

The four sources of uninsurable risk are...

View Answer

Suppose a person pays $80 of annual interest on a loan that has a 5 percent annual interest rate. The loan amount is


A) $400.
B) $1,600.
C) $160.
D) $85.

E) A) and B)
F) B) and C)

Correct Answer

verifed

verified

Economists claim that a farmer who owns her land, provides all her own labor, and calculates her profits from the farm by subtracting explicit costs from total revenues will


A) overstate her accounting profits.
B) understate her accounting profits.
C) overstate her economic profits.
D) understate her economic profits.

E) A) and D)
F) C) and D)

Correct Answer

verifed

verified

Showing 301 - 305 of 305

Related Exams

Show Answer