If the required reserve ratio is 0.12, the amount a bank can lend is equal to:
A. 88 percent of its reserves.
B. 88 percent of its deposits.
C. 12 percent of its reserves.
D. 12 percent of its deposits.
Answer: B
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One of the most widely followed stock indexes in the United States is the S&P 500. This index represents
A) the stock prices of the 500 most valuable firms worldwide. B) the stock prices of more than 4,000 U.S. firms. C) the stock prices of 500 large U.S. firms. D) the stock prices of 30 large U.S. corporations.
Recall the Application about the time involved in including cell phones in the calculation of the Consumer Price Index (CPI) to answer the following question(s).According to this Application, the failure of including cell phones in a timely manner when calculating the Consumer Price Index (CPI) caused the telecommunications component of the price index:
A. to be biased downward. B. to be biased upward. C. to actually register no perceptible bias. D. to become negative.
If demand is represented as Qd = 20 - 3P and supply is represented as Qs = 4 + 5P, the demand curve intersects the y axis at a price of ________ and the supply curve intersects the y axis at a price of ________
A. $3; $5 B. $24; $2 C. $20; $4 D. $17; $9
When the cost of the CPI market basket increases from one year to the next, we know that
A) on the average, current prices are less than past year prices. B) the quantities of the goods and services contained in the CPI market basket have increased on the average. C) the prices of the goods and services contained in the CPI market basket have increased on the average. D) on the average, current prices are below base year prices. E) either the quantities of the goods and services contained in the CPI market basket have increased on the average and/or the prices of the goods and services contained in the CPI market basket have increased on the average.