What are the two basic categories of financial institutions?
A. the foreign exchange markets and the stock markets
B. the financial markets and financial intermediaries
C. the market for loanable funds and the market for capital
D. the lending market and the deposit market
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A certificate of indebtedness that specifies the obligations of the borrower to the holder is called
A. stock.
B. mutual fund.
C. bond.
D. All of the above are correct.
Which of the following is correct?
A. Some degree of unemployment is inevitable.
B. Other things the same, an increase in the number of people who are unemployed decreases real GDP.
Cyclical unemployment is inversely related to short-run economic fluctuations.
D. All of the above are correct.
The unemployment rate is computed as the number of unemployed times 100
A. divided by the labor force.
B. divided by the number of people employed.
C. divided by the adult population.
D. times the participation rate.
Increasing the minimum wage would increase
A. both frictional and structural unemployment.
B. frictional unemployment, but not structural unemployment.
C. structural unemployment, but not frictional unemployment.
D. neither frictional nor structural unemployment.
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