1. You invested $100 at the start of the year. You now have $103. Inflation is 3% since the start of the year. Which of the following is a FALSE statement?
A. The nominal interest rate you earned is 3%.
B. The real rate of return on your investment is 3%.
C. You can buy no more goods and services with your money than you could at the start of the year.
D. The nominal interest rate you earned is well approximated by adding the inflation rate to the real rate.
E. The nominal interest rate you earned is equal to (1 + the real rate) times (1 + the inflation rate).
2. The__________is an example of an over-the-counter market, while the________is an example of an exchange.
A. Super DOT ; NASDAQ
B. ECN ; Securities Exchange Commission C. NASDAQ ; NYSE
D. NYSE ; Board of Directors
E. Floor broker ; Proxy
3. Which voting mechanism makes it easier for minority shareholders to replace directors?
A. Straight.
B. Cumulative.
C. Secret ballot.
D. Prodigy.
E. All of the above.