List the various categories in which a bank's assets are divided?
What will be an ideal response?
A bank's assets are divided into:
a. bank reserves: These include vault cash and its holdings on deposit at the central bank of the country.
b. cash-equivalents: These are riskless, liquid assets that the bank can immediately access, like deposits with other banks.
c. long-term investments: These are mostly comprised of loans to households and firms, but also include things like the value of the real estate that the bank uses for its operations.
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Which of the following is NOT a reason that people tend to deposit their funds with banks rather than lend their funds directly to other individuals?
A) asymmetric information problems B) adverse selection problems C) moral hazard problems D) liquidity problems
Refer to Table 17-6. The Hair Cuttery, a new hair salon, is ready to start hiring. The table above shows the relationship between the number of hairdressers the firm hires and the quantity of haircuts it produces
a. Suppose the price of haircuts is $8. Complete the table by filling in the values for marginal product and marginal revenue product. b. The Hair Cuttery is an input price-taker. Suppose the wage paid to hairdressers is $40 per day. What is the profit-maximizing number of hairdressers? c. Suppose the wage rate rises to $60 per day. (i) What happens to the firm's demand curve for hairdressers? (ii) What happens to the profit-maximizing quantity of hairdressers? d. Suppose the wage rate is $40 per day and the price of haircuts is now $10. (i) What happens to the firm's demand curve for hairdressers? (ii) What happens to the profit-maximizing quantity of hairdressers?
The price of X falls by ten percent, and the quantity demanded of X increases by ten percent. Meanwhile, the quantity demanded of Y increases by ten percent too. We would conclude that
A) demand for X is elastic, and X and Y are substitutes. B) demand for X is elastic, and X and Y are complements. C) demand for X is unit-elastic, and X and Y are complements. D) demand for X is inelastic, and X and Y are unrelated.
Mitsubishi Corporation of America builds a car in Normal, Illinois, and ships it to Japan for sale. In which country's GDP is this production included?
a. Japan b. both Japan and the United States c. in Japan as retail value and the United States as wholesale value d. half the value in Japan and half in the United States e. the United States