With ATMs, it is possible to retrieve cash from the bank at any time. One hundred years ago, one could only get cash from the bank during business hours, say, 9 am to 3 pm. The present availability of 24-hour service has arisen because:
A. it was impossible to provide 24-hour service 100 years ago.
B. flexibility was not valued 100 years ago.
C. the cost of providing 24-hour service is much lower today.
D. government forced banks to become more convenient.
Answer: C
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What will be an ideal response?
Hans Selye called beneficial stress:
a. Distress b. Eustress c. Prostress d. Type B stress
A firm is considering using its own funds to finance an investment, but needs an estimate of the discount rate. Currently the firm is earning 4 percent on funds held in a bank account and 6 percent on funds held in stocks. If the firm has 20 percent of its funds in the bank account and the remaining 80 percent in stocks, what is the firm's weighted average cost of capital?
A) 5.8 percent B) 4.2 percent C) 4.4 percent D) 5.6 percent
Which of the following does not increase (i.e., shift) the supply curve of real loanable funds?
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