Are small town banks monopolies?
a. No, they are regulated by government agencies.
b. Yes, one town is an easy market to monopolize.
c. Yes, there are many barriers to competition in banking.
d. No, there are other banking options that are easy to use.
d. No, there are other banking options that are easy to use.
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Insurance can be profitable when it
A) eliminates risks. B) decreases risks. C) pools risks. D) changes the individual's marginal utility of wealth.
A market situation in which a large number of firms produce similar but not identical products is
A) a collusive market structure. B) competitive monopoly. C) a homogeneous market. D) monopolistic competition.
Assume that the Paris First National Bank currently has deposits of $20 million. If the current required reserve ratio is raised from 20 percent to 40 percent, then:
a. Paris First National Bank does not have to comply with the Federal Reserve mandate. b. required reserves will decrease from $16 million to $12 million. c. excess reserves will automatically increase by $20 million. d. Paris First National Bank must close out 4 million in loans. e. Paris First National Bank must increase its required reserves from $4 million to $8 million.
A conversion of checking account balances into savings account balances would ____ M1 and ____ M2. a. increase; increase
b. not change; increase. c. decrease; decrease. d. decrease; not change.