James used 250,00 . from his savings account that paid an annual interest of 15 to purchase a hardware store. After one year, James sold the business for 320,000 . An economist calculated his profit to be:
a. 320,000
b. 70,000
c. 282,500
d. 32,500
QUESTION 2In the case where interest rates are lower in Japan, which of the following is an example of a carry trade
a. Increase borrowing in the US, convert to Yuan and invest in financial assets in Japan
b. Increase borrowing in Japan and invest in Japan
c. Increase borrowing in Japan, convert to Dollars and invest in the US
d. Increase borrowing in the US and invest in the US
QUESTION 3Grooming well for a big date is a
a. Screening mechanism
b. Signaling mechanism
c. Way to waste money
d. None of the above
QUESTION 4James used 250,00 . from his savings account that paid an annual interest of 15 to purchase a hardware store. After one year, James sold the business for 320,000 . His accountant calculated his profit to be:
a. 320,000
b. 70,000
c. 282,500
d. 32,500
QUESTION 5If a panic causes Indian depositors to withdraw their money from Japanese banks, it would cause the Japanese Yen to ___________, since the supply of Yen has__________
a. Appreciate; Decrease
b. Depreciate; Decrease
c. Appreciate, Increase
d. Depreciate; Increase
QUESTION 6Offering an expensive engagement ring to your (future) bride is a
a. Screening mechanism
b. Signaling mechanism
c. Way to waste money
d. None of the above
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