If the players in the figure shown act in their own self-interest, then we know that Adidas will earn:
A. $2 million.
B. $8 million.
C. $6 million.
D. $10 million.
C. $6 million.
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The factors of production include all goods and services produced in an economy.
Answer the following statement true (T) or false (F)
Suppose a bank has $10 million in deposits with no excess reserves, and the reserve requirement is 20%. If the Fed reduces the reserve requirement to 5%, the bank can make a maximum loan of
A) $0. B) $0.5 million. C) $1.5 million. D) $2 million.
If orders exist in large volume, then the market has
A) depth. B) breadth. C) resiliency. D) None of the above.
Banks, savings and loans associations, and credit unions that are able to loan out some fraction of their deposits are
a. examples of financial intermediaries b. all required to be FDIC members c. always the most risky investors d. part of the Federal Reserve System e. disallowed from charging interest on their deposits but can charge interest on their loans