If a bank has negative excess reserves,
A. it is bankrupt.
B. its required reserves are greater than its actual reserves.
C. it must stop making loans.
D. it must raise the interest rates it is charging borrowers.
B. its required reserves are greater than its actual reserves.
You might also like to view...
The figure above shows the marginal social cost curve of generating electricity and the marginal private cost curve. The marginal external cost when 100 billion kilowatt hours are produced is
A) 0¢ per kilowatt. B) 5¢ per kilowatt. C) 10¢ per kilowatt. D) 15¢ per kilowatt. E) 20¢ per kilowatt.
FICA is a payroll tax imposed on employers and workers that is used to fund Social Security and Medicare. Which of the following statements regarding the tax is true?
A) Most economists believe the burden of the tax falls almost entirely on workers. B) Congress wanted the burden of the tax to be greater for employers than for workers. C) Most economists believe the burden of the tax falls mostly on employers. D) Employers are required to pay a greater share of the tax than workers but most economists believe the burden of the tax is shared equally.
Productive efficiency implies that
A) it is impossible to obtain gains in one area without losses in another. B) it is possible to obtain gains in one area without losses in another. C) there are too many resources available. D) there are too few resources available.
Recall the Application about federal quality standards in the market for kiwifruit to answer the following question(s).Recall the Application. The U.S. kiwifruit information asymmetry was reduced by advertising.
Answer the following statement true (T) or false (F)