Which of the following is NOT true about the equilibrium price?
A. the price where quantity demanded equals quantity supplied
B. the price where the demand curve intersects the supply curve
C. the price where a change in quantity supplied occurs
D. the price where there is neither excess quantity demanded or excess quantity supplied
Answer: C
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Most commercial banks belong to the Federal Reserve System
a. True b. False Indicate whether the statement is true or false
The rule of rational choice: a. requires the availability of complete information before decisions can be made. b. can only be applied in business decisions
c. involves "marginal thinking." d. is the basis on which only greedy people make decisions.
In order to reestablish people's confidence in the banking system after the passage of the National Bank Act in 1864,
a. banks were no longer allowed to lend more than 10 percent of the value of their capital stock to any single borrower b. banks were encouraged to accept real estate as collateral for loans c. the office of Comptroller of the Currency was abolished d. the Treasury was encouraged to depreciate the currency as rapidly as possible e. Confederate notes and Greenbacks were accepted on a one-to-one basis
A favorable supply shock causes the price level to
a. rise. To counter this a central bank would increase the money supply. b. rise. To counter this a central bank would decrease the money supply. c. fall. To counter this a central bank would increase the money supply. d. fall. To counter this a central bank would decrease the money supply.