If a bank receives $2,500 of reserves by selling a government bond to the Fed, its ability to make loans increases by $2,500
a. True
b. False
Indicate whether the statement is true or false
False
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If the amount of high-powered money were 100 and the bank reserve holding ratio was 0.25 then the maximum stock of deposits would be (assuming that all money is deposited in the banking system)
A) 500. B) 450. C) 400. D) 350.
All of the following represent advantages or disadvantages of independent entry into a foreign market except which one?
A) The managers do not risk divided interests; the managers will make decisions based on the interest of the firm. B) Managers retain total control over operations. C) All profit (or losses) is (are) reserved for the firm. D) Managers immediately gain familiarity with the foreign markets, laws, and traditions.
The United States is a net importer of capital. This means
a. that U.S. citizens own more foreign assets than foreigners own U.S. assets. b. that citizens of other countries are buying more U.S. assets than Americans are buying abroad. c. only that U.S. citizens own foreign assets. d. only that foreign citizens own U.S. assets. e. that citizens of other countries are buying fewer U.S. assets than Americans are buying abroad.
Monopoly pricing prevents some mutually beneficial trades from taking place. These unrealized, mutually beneficial trades are
a. of little concern to society. b. a deadweight loss to society. c. a sunk cost to society. d. also observed in competitive markets.