The Ponderosa Bank receives a new deposit of $2,500. The reserves requirement is 20 percent. How much can this bank loan out as a result of this deposit?
A. $25,000
B. $12,500
C. $3,125
D. $2,000
E. $500
Answer: D
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Using a discount rate above the market interest rate to evaluate projects will
a. bias a decision toward going ahead with the project b. correct for distortions in capital markets c. have no impact on project evaluation d. bias a decision toward rejecting a project e. none of the above
Refer to the payoff matrix below. If each cell has a probability of occurrence of 0.25, what are Cruise R Us' expected profits?
Cruise R Us and Cruise the World compete in the cruise line industry. Each firm needs to determine if they are going to offer special cruise packages with special rates or not offer the specials. The above payoff matrix shows the firms' net economic profit for each set of strategies.
A) $5 B) $8 C) $3 D) $9
The M1 money supply consists primarily of: a. savings deposits
b. certificates of deposit. c. miscellaneous near-monies. d. checkable deposits. e. money market mutual fund accounts.
If the government imposes a price ceiling below the market equilibrium price, which of the following will result?
A. There will be a surplus of the good. B. The quantity demanded will exceed the quantity supplied. C. The quantity supplied will exceed the quantity demanded. D. The demand curve will shift to the left.