In Open Economies

question 41

Multiple Choice

In open economies

• A) saving and investment are necessarily equal.
• B) as in a closed economy, saving and investment are not necessarily equal.
• C) saving and investment are not necessarily equal as they are in a closed economy.
• D) saving and investment are necessarily equal contrary to the case of a closed economy.
• E) investment always refers to the domestic stock market.

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Definitions:

Limit Order Book

A record of all the open buy and sell orders for a particular security at various prices.

Russell 2000 Index

An equity index measuring the performance of the 2,000 smallest companies in the Russell 3000 Index, commonly used as a benchmark for small-cap U.S. stocks.

S&P 500 Index

A stock market indicator in the United States comprising 500 major corporations listed on the NYSE or NASDAQ, based on their market capitalization.

Rate of Return

The upward or downward movement in the value of an investment over a certain period, measured as a percentage of the cost at the beginning.