Banks that are managed in a very safe and conservative manner can be expected to earn
a. high, steady profits.
b. high but volatile profits.
c. low and consistent profits.
d. low profits with occasional major losses.
c
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An increase in the U.S. interest rate differential increases the demand for dollars
Indicate whether the statement is true or false
Because the Constitution forbids restraints on interstate trade
A) the U.S. may not impose tariffs on imports from NAFTA countries. B) the U.S. may not affect the international value of the $ U.S. C) the U.S. may not put restraints on foreign investments in California if it involves a financial intermediary in New York State. D) the U.S. may not impose export duties. E) the U.S. may not disrupt commerce between Florida and Hawaii.
Joe's demand for spring water can be represented as p = 10 - Q (where p is measured in $/gallon and Q is measured in gallons). He recently discovered a spring where water can be obtained free of charge. His consumer surplus from this water is
A) $0. B) $50. C) $100. D) unknown based upon the information provided.
A key causal link in the interest-rate-based transmission mechanism for monetary policy is from
A) investment to the interest rate. B) the money supply to excess reserves. C) a monetary policy action to excess reserves. D) real GDP to investment.