From an accounting point of view, a checking account should be considered part of a bank's
A. liabilities
B. reserves
C. profits
D. assets
Answer: A. liabilities
Because checking account is that account in which people can deposit and make withdrawl of money. Liability of a bank is the transaction process of money which makes loan and deposits.
Therefore, we can say that checking account is a liability of bank.
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Which of the following is true about the United States?
A. There has only been one recession in U.S. history. B. There have been recessions every couple of years throughout U.S. history. C. Recessions have never occurred in the United States. D. Recessions have occurred periodically in U.S. history. E. Recessions in the United States have generally been worse than in other countries.
Which of the following is NOT counted as an economic resource?
a. Land. b. Physical labor. c. Mental abilities of labor. d. Money supply. e. Entrepreneurship.
Suppose the income elasticity of demand for toys is +2.00. This means that:
A. a 10 percent increase in income will increase the purchase of toys by 20 percent. B. a 10 percent increase in income will increase the purchase of toys by 2 percent. C. a 10 percent increase in income will decrease the purchase of toys by 2 percent. D. toys are an inferior good.
Short-run average cost exceeds long-run average cost only when there are economies of scale
Indicate whether the statement is true or false