In Harvey, N.D. three local banks have issued no-interest loans in the form of Harvey Bucks. They can be spent in local stores. Retailers get 95 U.S. cents for each Harvey Buck. From this information you can conclude that Harvey Bucks:

• A.although less liquid than Fed Notes, are money because they are accepted as money and they are assets of everyone who holds them.
• B.are not money because they are liabilities for consumers who have been issued Harvey Bucks.
• C.are not money because they are not backed by the Federal government.

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A consistent estimator is an estimator

• A.where the expected value of the estimate equals the population parameter.
• B.where no other unbiased estimator of the same parameter has a sampling distribution with smaller variance.
• C.for which the probability of accurate estimates increases as sample size increases.

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According to the Framework for the Preparation and Presentation of Financial Statements, the objective of financial statements is fair presentation of the company's
I). financial position.
II). financial performance.
III). cash flows.
IV). earning power.

• A.I and II.
• B.I, II and III.
• C.All of them.

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Consider two bonds, A and B.
They are both issued by the same corporate firm. They both have the
same maturity, seniority, and coupon. The only difference between the two bonds is that A is callable and
B is not. Which of the following most likely best describe the relationship between A and B

• A.Bond A will have a lower yield than bond B
• B.Bond B will have a lower price than bond A
• C.Bond A will have a higher yield than bond B

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Features of a firm's technology that lead to falling long-run average cost as output increases are

• A.economies of scale.
• B.diminishing returns.
• C.diseconomies of scale.

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