The leverage ratio is the ratio of a bank's
A) assets divided by its liabilities.
B) income divided by its assets.
C) assets divided by capital.
D) capital divided by its total liabilities.
C
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Which of the following is not a reason why firms experience economies of scale?
A) Workers and managers can become more specialized, enabling them to be more productive. B) As output increases, the managers can begin to have difficulty coordinating the operations of their firms. C) Technology can make it possible to increase production with a smaller increase in at least one input. D) Larger firms may be able to purchase inputs at lower costs than smaller competitors.
Open market operations is conducted by the ________, which is part of the Fed.
Fill in the blank(s) with the appropriate word(s).
The basic concept behind strategic trade policy is that free trade is the best policy to pursue, but some countries don’t play by those rules. Therefore,
A. it makes no sense to engage in trade at all, and it makes sense to be self-sufficient. B. it makes sense to restrict imports of items that are of military significance in order to maintain a strong defense posture. C. it makes sense to threaten to protect markets unless other nations agree to open theirs. D. it makes no sense to export items of strategic importance to other nations, because they should make them on their own.
The Lost Decade began in 1990 when Colombia announced that it lacked the international reserves it needed to pay the interest and principle due on its foreign debt
Indicate whether the statement is true or false