When a banking system provides people with immediate access to their deposits, but allows banks to loan out part of its reserves, it is known as the
a. excess reserve system
b. excess demand deposit system
c. fractional reserve system
d. legal required reserve system
e. multiple banking system
C
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Capital is a factor of production. Which of the following is an example of capital?
i. $1,000 in money ii. 100 shares of Microsoft stock iii. $10,000 in bonds issued by General Motors iv. a drill press in your local machine shop A) i and ii B) ii only C) iii only D) iv only E) ii and iii
Using the data in the table above, when the price of a skirt rises from $20 to $35, what is the price elasticity of demand? (Use the midpoint method.)
A) 0.33 B) 0.25 C) 1.00 D) 1.33 E) 3.00
Two duopoly firms form a cartel. They decide to collude and fix the price of their good. Each individual firm will earn the highest profit if
A) it cheats and the other sticks with the agreement. B) both stick with the agreement. C) it sticks with the agreement and the other cheats. D) they both cheat.
A bank's reserves:
A. are the sum of its excess and required reserves. B. can be held as cash in its vault. C. can be held as deposits with the Federal Reserve. D. All of these