Fractional reserve banking can be thought of as a bank
A) withholding a portion of its total deposits that are not loaned out.
B) holding deposits equal to its net worth.
C) paying a fraction of its profit to depositors.
D) loaning out all of its reserves.
Answer: A) withholding a portion of its total deposits that are not loaned out.
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Use the figure below to answer the following question.
If actual production and consumption occur at Q2
A. missing surplus of a + b + c + d occurs. B. economic surplus is maximized. C. missing surplus of e + f occurs. D. missing surplus of a + c occurs.
Despite the improvements in information technology, productivity growth since 2006 has fallen to an even lower rate than during the period of slow growth from the mid-1970s to the mid-1990s
Indicate whether the statement is true or false
A price floor is a price set below equilibrium by government and it creates a shortage
a. True b. False Indicate whether the statement is true or false
Paine Pharmaceuticals produces medicines in the U.S. Its overseas sales
a. are an export of the U.S. and increase U.S. net exports. b. are an export of the U.S. and decrease U.S. net exports. c. are an import of the U.S. and increase U.S. net exports. d. are an import of the U.S. and decrease U.S. net exports.