The Norfolk Bank has $18,000 in excess reserves and the reserve ratio is 20 percent. How much checkable deposits and reserves does this bank hold?
A. $160,000 in checkable-deposit liabilities and $48,000 in reserves
B. $140,000 in checkable-deposit liabilities and $46,000 in reserves
C. $120,000 in checkable-deposit liabilities and $32,000 in reserves
D. $100,000 in checkable-deposit liabilities and $30,000 in reserves
B. $140,000 in checkable-deposit liabilities and $46,000 in reserves
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How are demand-pull and cost-push inflation reflected in terms of the AD-AS model?
A balance-of-trade deficit exists if
A. the dollar value of exports exceeds the dollar value of imports. B. the dollar value of imports exceeds the dollar value of exports. C. money outflows exceed money inflows. D. money inflows exceed money outflows.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, a decrease in unemployment may be represented by the movement from
A. B to A. B. C to D. C. B to D. D. A to C.
If reckless drivers are more likely to buy automobile insurance than safe drivers are,
A) a moral hazard has occurred. B) adverse selection has occurred. C) the market for insurance is efficient. D) then automobile insurance will be fairly priced.