1. The bid-ask spread increases if the price level _____ and volatility _____.
increases; increases
increases; decreases
decreases; increases
decreases; decreases
2. If you borrow $4,600 at $850 interest for one year, what is your effective interest rate for the following payment plans? (Input your answers as a percent rounded to 2 decimal places.)
A. annual payment
B. semi-annual payments
C. quarterly payments
D. monthly payments