International reserves are:
A. dollars held by the Federal Reserve to support the value of the dollar.
B. reserves held by banks to back international deposits.
C. foreign currency deposits held by banks to provide international liquidity for domestic customers.
D. foreign currency assets held by a government for the purpose of purchasing domestic currency in the foreign exchange market.
Answer: D
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All of the following are keys to economic development EXCEPT
A) establishment of a system of property rights. B) minimizing "creative destruction." C) open economies. D) an educated workforce.
An element of trust is built into money because
A. people must trust that the government can always print more of it if necessary. B. people must trust that it will still have value when they want to spend it in the future. C. the government maintains a monopoly over the money supply, and people tend to trust monopolies. D. people must trust the Federal Reserve to prevent banks from failing.
On a bank's balance sheet, liabilities are
A) the uses of acquired assets. B) the sources of acquired funds. C) all those items of value owned by the bank. D) by definition equal to the bank's assets.
Refer to the information provided in Table 31.1 below to answer the question(s) that follow.Table 31.1PeriodQuantity of Labor (L)Quantity of Capital (K)Total Output (Y)1 50 50 2002 60 50 2203 70 50 2354 80 50 245Refer to Table 31.1. During Period 2, labor productivity is equal to
A. 0.27. B. 0.83. C. 1.2. D. 3.67.