Non-depository institutions would include all of the following except:
A. credit unions.
B. pension funds.
C. insurance companies.
D. finance companies.
Answer: A
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Productivity is defined as: a. the ratio of a specific measure of output to a specific measure of input
b. the production of worthwhile goods and services. c. the market value of goods, services, and resources produced per time period (e.g., per year). d. average input divided by average output. e. total input divided by average output.
If there is a duopoly and the products are identical (homogeneous), the firm selling the product for a lower price:
a. will earn less revenue. b. will get 100% of the sales. c. will have a hard time being profitable. d. will be perceived to have lower quality products.
Restrictions on free international trade designed to protect domestic industries from competitive market forces that originate beyond the borders of the country are:
A) competitive policies. B) protectionist policies. C) free trade policies. D) antitrust policies.
If the marginal propensity to consume (MPC) is 0.75, a $50 decrease in government spending, other things being equal, would cause equilibrium real GDP to:
A. increase by $50. B. decrease by $50. C. increase by $200. D. decrease by $200.