"Banks hold about 50 percent of their assets as reserves." Is the previous statement correct or not?
What will be an ideal response?
The statement is incorrect. In 2011 banks kept an average of 13 percent of their assets as reserves.
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Long-run macroeconomic equilibrium is achieved when the money wage rate has adjusted so that employment is such that real GDP equals potential GDP
Indicate whether the statement is true or false
An increase in the growth rate of population in a steady-state economy would cause
A) a parallel shift upward in the investment line. B) a pivot up and to the left in the investment line. C) a pivot down and to the right in the investment line. D) a parallel shift downward in the investment line.
When a firm experiences economies of scale, long-run average total cost falls as the quantity of output increases
a. True b. False Indicate whether the statement is true or false
Patti buys a new kind of cereal to try even though it's more expensive than her favorite kind. After a single bowl, Patti decides she does not care for the new cereal at all, and she:
A. throws it away, because she irrationally spent money on something she had no information about. B. forces herself to finish it, because she irrationally focuses on the sunk cost of the cereal. C. forces herself to finish it, because she rationally computes the cost per bowl. D. None of these is likely to happen for the reason stated.