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Need help with my review 35. To calculate the future valuc of a today's dollar amount we need to , ) To multiply the first

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35. To calculate the future valuc of a today's dollar amount we need to , ) To multiply the first period (initial) principal by (1+1) b) To multiply the last period principal by by (1-2) c) To divide the last period principal by by (- d) To divide the first period principal by by (1- 36. Rising inflation results in a) Rising nominal interest rates b) Declining nominal interest rates c) Declining taxes d) None of the above 37. An example of Fiscal policy may include a) A rising Fed Funds rate b) Increasing money supply c) Constructing a new highway d) Raising the Reserve Requirement 38. The objective of consumers is to a) Maximize utility b) Save money c) Maximize profits d) Maximize social welfare 39. One of the important constraints faced by the govermment is a) Low profits b) Low sales c) Low utility d) Its limited budget 40. A Capital Loss for an asset corresponds to the case where The asset is losing value The asset is characterized by a low interest rate The asset is gaining value None of the above a) b) c) d) 41. Moral Hazard issues associated with a borrower is a type of b) Capital gains c) Cost function d) Derivatives 42. By looking at stock's P/E ratios we maybe able to identify asset bubbles Identify government spending Low interest rates None of the above a) b) c) d) 43. An asset is considered illiquid if Can be easily converted to money b) a) Cannot be easily converted to money c) Bears low interest rate d) Is associated with low returns I of the above Hedge riginal purpose of Hedging (NOT

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