Modern banks in the United States can keep reserves as:
A. commodity money only.
B. a deposit at the Federal Reserve.
C. gold.
D. in accounts with other banks.
B. a deposit at the Federal Reserve.
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Refer to Scenario 12.1. What is the probability of either Simon, Paula, or both of them trying to rescue the man?
A) 9% B) 49% C) 70% D) 91%
The government imposes a sales tax on hot dogs. The tax would be paid entirely by hot dog sellers if the
A) supply is perfectly elastic. B) supply is perfectly inelastic. C) demand is perfectly inelastic. D) none of the above.
As the interest rate increases, _____
a. the supply of loanable funds increases b. the supply of loanable funds decreases c. the quantity supplied of loanable funds increases d. the quantity supplied of loanable funds decreases
Today the primary distinction between direct and indirect finance is in:
A. direct finance the asset holder has a claim on a financial institution while in indirect finance the asset holder has a direct claim on the borrower. B. indirect finance the asset holder has a claim on the government while in direct finance the asset holder has a direct claim on a private sector corporation. C. indirect finance the lender has a direct claim on the borrower while in direct finance the lender has a claim on a financial institution. D. direct finance the asset holder has a direct claim on the borrower while in indirect finance the asset holder has a claim on a financial institution.