Which of the following is an asset of a bank and a liability for its customers?
a. deposits of its customers and loans to its customers
b. deposits of its customers but not loans to its customers
c. loans to its customers but not the deposits of its customers
d. neither the deposits of its customers nor the loans to its customers
c
You might also like to view...
The price elasticity of demand for DVDs is 2. If the price of a DVD increased by 2 percent, the quantity demanded will ________
A) decrease by 2 percent B) not change C) decrease by 4 percent D) decrease by 1 percent
When someone sells a bond at a discount, the holder of the bond earns ________ with the purchase
A) a capital gain B) a capital loss C) market value D) interest
In an economy with production function Y = 1.5 × , K = 343, and L = 512. If factor markets are in equilibrium, then the rental price of capital is (approximately) ________, and the real wage is (approximately) ________
A) 0.5; 0.8 B) 7; 8 C) 0.9; 1.35 D) 1.4; 0.4 E) 0.6; 0.9
In the long run,
a. large government budget deficits cause productivity to increase, thereby leading to inflation b. large government budget deficits drive down interest rates and reduce investment spending c. large government budget surpluses mean reductions in the money supply d. changes in the government budget deficit have no effect on the capital stock e. large government budget deficits drive up interest rates and reduce investment spending