Which of the following appears on the asset side of a bank's balance sheet?
a. Required reserve deposits.
b. Loans.
c. Excess reserves.
d. All of these.
d
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A set of actions that a firm takes to achieve a goal, such as maximizing profits, is called
A) the Porter's Competitive Forces plan. B) game theory. C) a payoff matrix. D) a business strategy.
If the ratio of price of cloth (PC) divided by the price of food (PF) increases in the international marketplace, then
A) the cloth exporter will increase the quantity of cloth produced. B) the cloth exporter will increase the quantity of cloth exported. C) the food exporter will increase the quantity of food exported. D) the cloth exporter will decrease the quantity of cloth exported. E) the country would import more cloth.
Diversification of assets cannot eliminate which kind of risk?
A. Idiosyncratic risk B. Market risk C. Individual risk D. Downside risk
Suppose, in the United States, each farmer is given a federal agricultural subsidy worth $30,000 . What will be the effect of such subsidy?
a. It discourages domestic agricultural production. b. It allows U.S. farmers to sell their products for lower prices in foreign markets. c. It gives foreign producers an unfair cost advantage. d. It increases the amount of agricultural imports into the United States. e. It reduces the prices of the primary products in the U.S. market.