A bank has a 10 percent reserve requirement, $36,000 in loans, and has loaned out all it can given the reserve requirement
a. It has $3,600 in deposits.
b. It has $32,400 in deposits.
c. It has $39,600 in deposits.
d. It has $40,000 in deposits.
d
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In which of the following markets are external benefits most likely to exist?
A) in the market for gasoline B) in the market for ball pens C) in the market for flu shots D) in the market for cigarettes
Suppose the demand in a certain duopoly market with homogenous goods is Qd = 8,000 - 100P. The two firms in the market are firm V and firm W, and the marginal cost of producing the goods in question is equal to $25. Which of the following describes the Nash equilibrium in this market?
A. PV = PW = $25 B. One of the firms charges a price higher than $25, and one of the firms charges a price lower than $25. C. PV = PW > $25 D. PV = PW < $25
Export demand shocks are likely to be least disruptive to a country with
A. a fixed exchange-rate system with sterilization. B. a fixed exchange-rate system without sterilization. C. a floating exchange-rate system. D. a deficit in the current account.
Which of the following is TRUE for the perfectly competitive firm?
A. Price elasticity of demand is equal to 1. B. AR is more than price. C. AR is less than price. D. Price and MR are always equal.