Which statement is false?
A. Time deposits are subject to higher reserve requirements than checking deposits.
B. Treasury bills and notes are generally considered part of a bank's secondary reserves.
C. Large banks are subject to a 10 percent reserve requirement on nearly all of their checking deposits.
D. None of the statements are false.
A.Time deposits are subject to higher reserve requirements than checking deposits.
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The theory of efficient markets suggests that:
A) systemically important financial institutions are more likely to fail. B) long-term investments by banks are more profitable than short-term investments. C) interest rates and inflation rates are inversely related. D) all movements in stock markets are based on rational appraisals of new information.
If firms in a competitive market are not identical, then an increase in cost will
A) shift marginal cost to the right. B) push the most inefficient firms out of the market. C) push the most efficient firms out of the market. D) There is not enough information to answer.
If a monopolist is forced to set price equal to average total cost, economic profit
a. will be negative, and the monopolist may go out of business b. will be zero c. will be positive d. will be negative, and the firm will stay in business if there are significant fixed costs e. may be positive, negative, or zero
A positively sloped long-run average total cost curve means there are economies of scale
Indicate whether the statement is true or false