Which of the following statements about the basic functions of money is TRUE？
A. When money is defined as a medium of exchange, it means that money enables value to be stored and transported.
B. Money’s value is directly related to the level of prices.
C. Paper money allows consumers to defer consumption, encourages division of labor, and is the best store of value.
D. Money’s function as a unit of account allows individuals to account for debts.
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You are expecting an additional payment of $2,000 of income this year. You intend to save $500 of the $2000. According to the multiplier effect, total spending will increase by a total amount of:
A. $1,500.
B. $4,000.
C. $6,000.
D. $2,500.
All of the following are properties of the student 抯 t-distribution EXCEPT it:
A. is symmetrical.
B. has "fatter tails" than a normal distribution.
C. is defined by a single parameter, the degrees of freedom (df).
D. is a normal distribution.
Which of the following statements is FALSE regarding hypothesis testing？
An analyst can perform a one-tailed or a two-tailed test.
B. A type I error is acceptance of a hypothesis that is actually false.
C. A type II error is the acceptance of a hypothesis that is actually false.
D. The significance level is the risk of making a type I error.
Sarah Parker is buying a new $25,000 car. Her trade-in is worth $5,000 so she needs to borrow $20,000. The loan will be paid in 48 monthly installments and the annual interest rate on the loan is 7.5%. If the first payment is due at the end of the first month, what is Sarah 抯 monthly car payment？
A. $480.57.
B. $483.58.
C. $416.67.
D. $427.63.
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