Because a bank has a very large pool of buyers and savers, it can:
A. act as an intermediary between firms and government.
B. provide liquidity to some individuals that deposit funds.
C. diversify the risk of saving and borrowing for individuals.
D. act in the best interest of society by ensuring there is enough money for people.
C. diversify the risk of saving and borrowing for individuals.
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An increase in price will decrease demand.
Answer the following statement true (T) or false (F)
Suppose the government has declared beer to be an illegal substance and imposes a fine on anyone caught buying a beer. Selling beer, however, remains legal
Using the above figure, in which CBL is the cost of breaking the law, what is the equilibrium price and quantity with this new law in effect? A) $5 per quart and 300 quarts of beer B) $3 per quart and 500 quarts of beer C) $3 per quart and 100 quarts of beer D) $1 per quart and 300 quarts of beer
The figure above shows the costs associated with producing paper. When paper is produced, there is some pollution runoff into a lake. Without regulation, ________ tons of paper will be produced and the price will be ________ per ton
A) 3; $150 B) 4; $100 C) 4; $200 D) None of the above answers is correct.
The use of quarterly data to develop the forecasting model Yt = a +bYt?1 is an example of which forecasting technique?
a. Barometric forecasting b. Time-series forecasting c. Survey and opinion d. Econometric methods based on an understanding of the underlying economic variables involved e. Input-output analysis