Subprime mortgages refer to the mortgages issued
A) by low rating financial institutions.
B) at an interest rate below prime rate.
C) to borrowers with low incomes and poor credit histories.
D) by government
C
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Which of the following would be a consequence of a bank choosing not lend its excess reserves:
A. Increased risk-taking by the bank. B. A decrease in the bank's required reserves C. An increase in the bank's reserve-deposit ratio D. An increase in the bank's total reserves
Does the existence of non-tradable goods allow for deviations from Purchasing power Parity?
What will be an ideal response?
The market value of a good or service is the:
A. price at which it is bought and sold. B. government's valuation using the CPI. C. price at which producers are willing to sell an output. D. None of these statements is true.
In the contestable market oligopoly model, firms ________ produce where price exceeds marginal cost.
A. always B. are not legally allowed to C. never D. do not always