A bank that wants to monitor the check payment practices of its commercial borrowers, so that moral hazard can be reduced, will require borrowers to
A) place a bank officer on their board of directors.
B) place a corporate officer on the bank's board of directors.
C) keep compensating balances in a checking account at the bank.
D) purchase the bank's CDs.
C
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In a perfectly competitive market industry, firm's prices are equal to
a. Average revenue b. Marginal revenue c. Both a and b d. None of the above
Which of the following is not an explicit cost?
a. Salaries. b. Sales taxes. c. Utilities, such as gas and electricity. d. Insurance. e. The firm owner's time.
A policy to increase aggregate demand to cure a recessionary gap may succeed; however, inflation is a likely result
a. True b. False Indicate whether the statement is true or false
The World Bank was created to help finance economic development in poor countries
a. True b. False Indicate whether the statement is true or false