One reason why banks might increase their reserve-deposit ratio above the minimum level in times of economic uncertainty is that
A. banks are most profitable when new loans are issued.
B. banks may have insufficient required reserves.
C. banks are initiating quantitative easing
D. banks may find only limited lending opportunities that seem sufficiently safe.
Answer: D
You might also like to view...
Stock prices are
A) based less on the current profitability of firms than on their expected future profitability. B) based equally on the current profitability of firms and on their expected future profitability. C) not based on the current profitability of firms or on their expected future profitability. D) based more on the current profitability of firms than on their expected future profitability.
A common characteristic of oligopolies is:
a. interdependence in pricing decisions. b. independent pricing decisions. c. low industry concentration. d. few or no plant-level economies of scale.
Chicken and fish are substitutes. Therefore, the cross elasticity of demand between chicken and fish should be: a. negative
b. positive. c. zero. d. All of the above are possible.
An activity that makes some people better off and nobody worse off is a
A. price floor that increases income to suppliers. B. government transfer program such as Social Security. C. reduction in interest rates. D. voluntary exchange.