Which of the following is a valid statement?
A. The required reserve ratio equals the required reserves as a percentage of total deposits.
B. The required reserves equal the maximum reserves required by the Fed.
C. Excess reserves equal total reserves plus required reserves.
D. The required reserve ratio equals percentage of savings account deposit, but not checkable deposits, required by the Fed.
Answer: A
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As a standard of deferred payment, money can be used to:
a. express debt obligations in the form of purchasing power. b. foster barter activity. c. facilitate exchanges of goods and services. d. achieve a common denominator for measuring the value of goods and services. e. ascertain the liquidity of financial assets.
Which of the following would you expect to lead to improved environmental quality?
A. An export or production subsidy from the French government to French wheat producers B. An export subsidy for producers of clean technology for producing paper C. Freer trade that promotes production of manufactured goods in developing countries where environmental laws are lax D. A voluntary export restraint on the part of Japanese auto producers
Given the combination of purchasing power parity (PPP) with quantity theory equations, which of the following statements is true?
A. As long as the money supplies in the two countries are the same, the exchange rate will be equal to one. B. Everything else remaining unchanged, the price of the foreign currency (e) would be reduced by an increase in the relative size of the money supply in the domestic economy. C. Everything else remaining unchanged, the price of the foreign currency (e) would be raised by an increase in the relative size of foreign production. D. The exchange rate would remain unaffected as long as the relative growth in productivity between the two nations remains constant, even if the relative money supply varies between the two economies.
Refer to the information provided in Table 6.1 below to answer the question(s) that follow. Table 6.1Number of Hamburgers per DayTotal UtilityMarginal Utility130?252?367?476?5?4Number ofSodas per DayTotal UtilityMarginal Utility120?235?347?457?5?7Refer to Table 6.1. The total utility of five sodas per day is
A. 35. B. 64. C. 92. D. indeterminate from this information.