The portion of ________ that a bank does not loan out or spend on securities is known as ________
A) loans; reserves
B) deposits; reserves
C) deposits; securities
D) loans; securities
Answer: B
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If the Federal Reserve sells $100 of securities through a commercial bank when the reserve requirement is 10 percent, the maximum potential change in the money supply is
A) a $1,000 increase. B) a $1,000 decrease. C) a $100 decrease. D) a $100 increase.
The law of supply states that, other things remaining the same,
A) demand increases when supply increases. B) if the price of a good increases, firms buy less of it. C) if the price of a good increases, the quantity supplied increases. D) as people's income increase, the supply of goods increases. E) if the price of a good increases, the supply increases.
If a pooling equilibrium is played in a signaling game, beliefs about the sender type can take on any form along the branch of the game tree that is not played in equilibrium, but on the branch that is played, beliefs are identical to the probability distribution with which "nature" assigned types to the sender.
Answer the following statement true (T) or false (F)
A consumer maximizes total utility when all available income is spent and the
A) marginal utility from each good is equal for all goods. B) marginal utility per dollar from each good is equal for all goods. C) dollars spent on the last unit of each good are equal for all goods. D) total utility from all goods purchased is equal.