On a bank's balance sheet, bank capital is considered:
A) an asset
B) a liability
C) the difference between a firm's assets and it's shareholder's equity
D) the total amount of funds banks have availability to make loans
B
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Why does entry primarily occur?
a. When a firm has the potential to profit from making a good b. When a firm has the potential to engage in perfect competition c. When a market contains very few competitors d. When goods in a market are in high demand
Many Americans have been hurt by recent economic events. Raising the minimum wage is the best policy to improve the wages and employment opportunities of Americans. This argument is
a. correct because a higher minimum wage will increase total income which will stimulate aggregate demand and employment. b. incorrect because while some people will receive higher wages, others will experience less employment and fewer training opportunities. c. correct because most minimum wage workers are household heads trying to earn enough to support their family. d. incorrect because the government has too big a deficit to pay for the increase in the minimum wage.
The forward exchange rate:
a. allows investors to be sure of the price at which they can trade forex in the future. b. is the rate at which a trader can purchase currency for immediate delivery. c. is the rate of discount that international banks get when they purchase. d. is the rate that speculators consider if they are looking for bargain prices .
The impossibility theorem is the idea that
A. private parties cannot arrive at the efficient solution without government intervention. B. it is impossible to exclude someone from enjoying the benefits of a public good. C. we cannot devise a voting scheme that respects individual preferences and gives consistent, non-arbitrary results. D. it is impossible for lawmakers to get legislation passed without agreeing to help other lawmakers get their legislation passed.