Which of the following is the best example of transaction cost?
a. The cost incurred on account of an increase in temporary workers
b. The extra money you could have earned by working over the weekend had you not chosen to go camping with your friends
c. The amount of time you spend in looking for a house
d. The increase in production cost resulting from an increase in the hourly wages of workers
c
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Gold is an excellent store of value because of its
a. divisibility, portability, and homogeneity b. divisibility and durability c. durability and relative scarcity d. durability and homogeneity e. divisibility, durability, and relative scarcity
If not all prices adjust instantly to changing economic circumstances, an unexpected fall in the price level leaves some firms with higher-than-desired prices, and these higher-than-desired prices depress sales and induce firms to reduce the quantity of goods and services they produce
a. True b. False Indicate whether the statement is true or false
Which of the following best illustrates diversification?
a. A company that produces many different products decides to produce fewer. b. After selling stock, corporate management spends funds on projects with greater risks than shareholders had anticipated. c. Instead of holding only the stocks of companies engaged in the banking business, a person decides to hold stock in a number of different companies producing different goods and services. d. A person decides to purchase only stocks that have paid high dividends in the past.
If total deposits at Last Bank and Trust are $100 million, total loans are $70 million, and excess reserves are $20 million, then which of the following is the required reserve ratio?
A. 70 percent. B. 30 percent. C. 20 percent. D. 10 percent.