At the current interest rate, the quantity of loanable funds supplied is greater than the quantity of loanable funds demanded. Therefore
A) equilibrium will not be achieved until something shifts the supply of loanable funds curve rightward.
B) the real interest rate is above the equilibrium level.
C) the real interest rate is below the equilibrium level.
D) equilibrium will not be achieved until something shifts the supply of loanable funds curve leftward.
E) equilibrium will not be achieved until something shifts the demand for loanable funds curve rightward.
B
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Long-lived goods used to produce other goods and services are called:
A. human capital. B. inventories. C. financial capital. D. physical capital.
When economists describe "a market," they mean
A. any place where, or mechanism by which, buyers and sellers interact to trade goods, services, or resources. B. any place where stocks and bonds are traded. C. a hypothetical place where the production of goods and services takes place. D. a communication network that allows individuals to keep in touch with each other.
If Bulge Bank has a desired reserve ratio of 10 percent, loans of $25,000, deposits of $100,000, vault cash of $10,000, and reserves at the Fed of $65,000, then the bank
A) has no remaining capacity to make loans. B) does not have enough reserves to meet its requirement. C) has excess reserves of $65,000. D) has excess reserves of $55,000. E) has excess reserves of $75,000.
The difference between currency outstanding and currency in circulation is equal to
A) vault cash. B) bank reserves. C) coins issued by the U.S. Treasury. D) zero; they are the same thing.