If excess reserves are $30,000, demand deposits are $100,000, and the required reserve ratio is 15 percent, then total reserves are
A. $45,000.
B. $15,000.
C. $130,000.
D. $30,000.
Answer: A
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A large company is trying to decide which of two health insurance plans to offer its employees. Plan A has a high monthly premium and a low deductible, and Plan B has a low monthly premium and a high deductible
Adverse selection is likely to be a bigger problem with A) Plan B because it is likely to attract employees who expect high medical costs, and therefore prefer low deductibles. B) Plan A because it is likely to attract employees who expect high medical costs. Healthier employees who do not expect to have many medical bills will not be willing to pay the high premiums. C) Plan B because it is likely to attract healthy employees who do not expect to have many medical bills. Because the monthly premiums are low, the insurance company will have a larger financial burden to bear in the event of claims due to serious illness. D) Plan A because it is likely to attract employees who tend to overuse health care services due to the low deductible. Insurance companies are likely to pay out more in claims than they collect in premiums.
The three noteworthy features of corporations’ legal status include all of these except
A. how they are taxed. B. special limits are placed on the losses that may be incurred by those who invest in corporations. C. the corporation is a distinct entity separate from its owners. D. they may invest in the stock market and acquire financing.
Roughly what was the median level of household income in the U.S. in 2012?
a. 50,000 b. 60,000 c. 70,000 d. 80,000
Recall the Application about the free-agent market for professional baseball pitchers to answer the following question(s).Recall the Application. Pitchers who switch teams ________ pitchers who do not switch teams.
A. spend more time on the disabled list, on average, than B. spend less time on the disabled list, on average, than C. spend exactly the same amount of time on the disabled list as D. are less injury-prone than