Question
1. Suppose that the current rate of interest is 6%, and a particular asset will yield an annual rate of return of $1,500. The market
1. Suppose that the current rate of interest is 6%, and a particular asset will yield an annual rate of return of $1,500. The market value of this asset is...
a.$9,000.b. $25,000.., $250,000.d. $90,000.
2. Which of the following is usually the MOST IMPORTANT factor in determining the interest rate on a loan?
a. Current technologyb.Anti-usury lawsc.The degree of risk involvedd.The capitalized value of the borrower's business assets
3. The present value of a dollar will be unaffected over time so long as...
a.interest rates remain constant.b.interest rates increase to match inflation.
c. interest rates decline steadily.d. none of the above.
4.Karl Marx would MOST LIKELY agree with which of the following statements? Profits are...
a.the necessary rewards of risk-taking.b.an effective means of discouraging undesirable competition.
c.an accurate measure of a society's productive capacity.d.that part of labor's productivity that the capitalist retains
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