A bank is solvent as long as its liabilities are greater than its assets
Indicate whether the statement is true or false
False
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Which of the following does not contribute to differences in interest rates?
a. Different loans are for different periods of time. b. Large loans generate more administrative costs per dollar than smaller loans. c. Different loans are subject to different tax rules. d. Loans to established businesses are evaluated differently from loans to new businesses. e. The longer the period of repayment, the greater the risk of higher-than-expected inflation.
Consider two individuals — Marquis and Serena — each of whom would like to wear sweaters and eat tasty food. The gains from trade between Marquis and Serena are most obvious in which of the following cases?
a. Marquis is very good at knitting sweaters and at cooking tasty food, but Serena's skills in both of these activities are very poor. b. Marquis and Serena both are very good at cooking tasty food, but neither has the necessary skills to knit a sweater. c. Marquis's cooking and knitting skills are very poor, and Serena's cooking and knitting skills are also very poor. d. Marquis's skills are such that he can produce only sweaters, and Serena's skills are such that she can produce only tasty food.
An individual's demand curve slopes down because
A. the value of the marginal utility falls as the price falls. B. marginal utility falls as price falls. C. of the law of diminishing marginal utility and the rule of equal marginal utilities per dollar. D. of the rule that the marginal utility of the last unit must equal the price.
Which of the following is FALSE with respect to regulation?
A. Regulation has resulted in state laws that have made creative response illegal in many states. B. Regulated firms commonly try to avoid the effects of regulation whenever they can. C. Firms engage in creative responses which conform to the letter of the law but undermine its spirit. D. Recent regulations have generated feedback effects that undermined the key aim of the rules.