An essential function for a bank is to
A. Lend all of its deposits.
B. Maximize its assets.
C. Minimize its reserve ratio.
D. Create money through lending.
Answer: D
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An individual anticipating rising interest rates is likely to hold more
A) money. B) real assets. C) stock. D) bonds.
Which of the following refers to the capture hypothesis of regulation?
A) the ability of the government to capture monopoly profits B) the control of regulatory agencies by firms in an industry C) consumer cost savings captured through regulation D) horizontal mergers
Gabby flips a fair coin and it comes up heads. Gabby suffers from the hot-hand fallacy if:
A. she thinks the coin will come up heads on the next flip because it came up heads on the previous flip. B. she thinks the coin will come up tails on the next flip because it came up heads on the previous flip. C. she thinks the coin is less likely to come up heads because it came up heads on the previous flip. D. she thinks the coin is equally likely to come up heads or tails on the next flip.
Efficiency wages will raise the quantity of labor supplied to the market
a. True b. False Indicate whether the statement is true or false