A bank faces a required reserve ratio of 5 percent. If the bank has $200 million of checkable deposits and $15 million of total reserves, then how large are the bank's excess reserves?
A. $0
B. $5 million
C. $10 million
D. $15 million
Answer: B
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Efficiency wages are
A) the result of demographic change. B) set below the equilibrium level of the real wage. C) offered by firms who want to reduce turnover in the labor force. D) special wages offered to teenagers. E) mandated by law.
Which of the following statements is TRUE?
I. A firm that is not economically efficient does not maximize profit. II. Economic efficiency depends on the relative costs of resources. III. A technological efficient firm is also economically efficient. A) I only B) II only C) II and III D) I and II
A key objective of a government safety net for the banking system is to ensure ________
A) that the poor have access to bank services B) an efficient allocation of credit C) bank profitability D) that depositors always believe that their money is safe in the bank
In a perfectly competitive industry, influence over price is exerted by: a. individual sellers
b. individual buyers. c. the largest firms. d. the forces of market supply and demand.