Reserve requirements are changed infrequently because
A. Banks can determine the amount of reserves they wish to hold regardless of the reserve requirement
B. Banks cannot usually meet their reserve requirements so the Fed does not monitor it
C. Banks set long-term policy decisions, loan decisions, and deposit decisions based on the reserve requirement
Ans: C. Banks set long-term policy decisions, loan decisions, and deposit decisions based on the reserve requirement
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Suppose that average labor productivity in Country C is $5,000, and that Countries C and E have the same real GDP per capita. Based on the information in the table, what must be the average labor productivity in Country E?CountryPopulation (millions)Share of Population Employed (%)A10060B15055C7550D25045E9540
A. $1,500 B. $6,250 C. $4,500 D. $1,000
A flight to quality refers to a shift by savers from
A) bonds and into stocks. B) stocks and into gold or other precious metals. C) bonds and into real assets, such as real estate. D) low-quality bonds and into high-quality bonds.
The largest overall recipients of remittances are:
A. China and India, which each get more than $5 billion per year. B. China and India, which each get more than $50 billion per year. C. Chile and Mexico, which each get more than $50 billion per year. D. Chile and Mexico, which each get more than $5 billion per year.
While on a construction site, Hank, an electrician, slips and falls on an oil-covered floor and injures his back. Hank is not to blame for the accident, and he will keep his job. However, he must stay home for at least two months while he recuperates. Which of the following will pay benefits to Hank while he recovers?
a. Workman’s compensation insurance b. Unemployment insurance c. Secondary insurance d. Liability insurance