Suppose that a bank has $250 in vault cash, $750 in deposits at the Federal Reserve, $9,000 of loans, and deposits of $10,000. How much does this bank have in reserves?
a) $250
b) $750
c) $1,000
d) $9,000
Ans: c) $1,000
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The production possibilities frontier is used by economists to depict
A) the strictly financial costs of production. B) the opportunity costs of production. C) the strictly financial benefits of production. D) the opportunity benefits of production.
Consider a graph on which one good Y is on the vertical axis and the only other good X is on the horizontal axis
On this graph the income-consumption curve has a positive slope for low incomes, then it takes a zero slope for a higher income, and then it takes a negative slope for even higher incomes (the curve looks like an arc, first rising and then falling as income increases). This curve illustrates that, for all income levels, A) both X and Y are normal. B) only Y is normal. C) both X and Y are inferior. D) only X is normal.
Demand for a country's independently floating currency is a function of the demand for that country's goods, services, and financial assets.
a. true b. false
Using cost plus pricing, what is the price if ATC = $14.50 and the target rate of return is 4 percent?
A. $15.10 B. $14.5 C. $49.34 D. $22.10