Use the Following to Answer Questions

question 421

Multiple Choice

Use the following to answer questions :
Table: Lemonade and Cookies

-(Table: Lemonade and Cookies) Look at the table Lemonade and Cookies. Assume that an economy produces only lemonade and cookies. Nominal GDP in 2014 was:

• A)$400.
• B)$420.
• C)$445.
• D)$820.

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Definitions:

Semi-annually

Occurring or calculated twice a year, typically in the context of interest payments or dividends.

Coupon Rate

The yearly interest rate a bond issuer pays to its holders, usually shown as a percent of the bond's nominal value.

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuer, which is not related to its market value.

Moody's

A credit rating agency that evaluates the creditworthiness of borrowers, ranging from governments to private enterprises, and assigns ratings that reflect the risk of default.