Under the modern system of fractional reserve banking, banks
a. keep cash reserves equal to only a fraction of their deposit liabilities.
b. loan out their excess reserves at interest, which is the key to their profitability.
c. are always potentially vulnerable to runs.
d. All of the above are correct.
d
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What is measured by marginal revenue product?
What will be an ideal response?
The demand for Healthy Bars, a health snack bar, is Qd = 10 - (2 × P) and Healthy Bars has a constant average cost of $3 per snack bar. If Healthy Bars wants to package their bars to create an all-or-nothing offer, what is the profit-maximizing number of bars to put into a package?
A) 2 B) 4 C) 10 D) 6
Firms in monopolistic competition and perfect competition typically
a. are price takers b. produce identical products c. earn zero economic profit in the long run d. face a downward-sloping demand curve e. face an upward-sloping total revenue curve at all rates of output
Ultimately, the source of growth in real wages is the growth in labor productivity
a. True b. False Indicate whether the statement is true or false