In general, banks make profits by selling ________ liabilities and buying ________ assets
A) long-term; shorter-term
B) short-term; longer-term
C) illiquid; liquid
D) risky; risk-free
B
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In the long-run equilibrium in perfect competition, consumer surplus is
A) positive. B) negative. C) zero. D) less than producer surplus.
A bank can legally hold reserves as: a. gold and coins
b. gold and checks. c. cash in its vault and non-interest-bearing reserve deposits at the Fed. d. gold and non-interest-bearing reserve deposits at the Fed. e. U.S. government securities and coins.
In response to a cost-reducing technological breakthrough in the production of its product, a profit-maximizing monopolist will normally:
A. decrease the price it charges for its product. B. increase its output and practice price discrimination. C. increase price and decrease production. D. not change its level of output or price.
The rule of 72 implies that a country will double its income in about 9 years if its growth rate is:
A. 6 percent. B. 4 percent. C. 11.1 percent. D. 8 percent.