Regulators require a bank to hold some of its assets as reserves mainly to address:
A. liquidity risk.
B. operational risk.
C. trading risk.
D. credit risk.
Answer: A
Economics
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A bank receives new deposits equal to $200,000 and the desired reserve ratio is 10 percent. What is the amount of new loans the bank can make?
What will be an ideal response?
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Which of the following is not an example of a factor of production?
a. A forest. b. A computer program. c. A labor leader. d. Dollars.
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In real business cycle theory, business cycle expansions begin as a result of changes in
A) GDP. B) long-run aggregate supply. C) aggregate demand. D) consumption. E) investment demand.
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The difference between exports and imports of goods is the
A) balance of trade. B) balance of payments. C) balance of accounts. D) balance of paying.
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