Suppose a bank has $2 million in excess reserves and total reserves of $10 million. A required reserve ratio of 10% is applicable to all deposits at the bank. What is the total amount of deposits at the bank?
a. $100 million
b. $8 million
c. $800 million
d. $80 million
e. $10 million
.D
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The working-age population is defined as the number of
A) people over the age of 16 who are not in jail, hospital, or other institution. B) people who have a job. C) people working full-time jobs who are over the age of 16. D) people looking for work.
Financial systems have all but which of the following in common?
A) market-oriented emphasis B) payments systems C) central banks D) information asymmetries
In reference to the long-run firm competitive equilibrium diagram, which of the following statements is INCORRECT?
A) In the long run, the firm has no incentive to alter its scale of operations. B) Because profits must be zero in the long run, the firm's short-run average costs (SAC) must equal P at Qe, which occurs at minimum SAC. C) In the long run, the firm operates where price, marginal revenue, marginal cost, short-run minimum average cost, and long-run minimum average cost all are equal. D) In the long run, this firm must be part of a constant-cost industry, because its marginal revenue curve is perfectly elastic.
A short-run supply curve is
a. horizontal, summing individual supply curves b. temporary, and disappears when price rises c. downward sloping reaching the horizontal axis d. upward sloping e. vertical