Suppose a bank has $100 million in checking account deposits with no excess reserves and the required reserve ratio is 20 percent. If the Federal Reserve reduces the required reserve ratio to 15 percent, then the bank will now have excess reserves of
A) $0.
B) $5 million.
C) $15 million.
D) $20 million.
Answer: B
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In the United States, in the early 1800s,
A) Southern farmers favored high tariffs while Northern manufacturers opposed them. B) all sectors opposed high tariffs. C) all sectors favored high tariffs. D) Southern farmers opposed high tariffs while Northern manufacturers favored them.
Assume that the riskiest individuals in a given population are the ones most likely to apply for health insurance. In this situation a provider of health insurance faces the problem of ________
A) moral hazard B) opportunity costs C) tertiary impedence D) adverse selection
If accounting profits are positive then economic profit is positive
Indicate whether the statement is true or false
Critics of advertising argue that advertising
a. creates desires that otherwise might not exist. b. enhances competition. c. benefits television viewers who enjoy TV commercials. d. All of the above are correct.