Excess reserves are important to bankers because:
a. They are typically deposited in special high-yielding investment accounts.
b. They represent the funds that can be used to acquire income-producing assets, such as loans and securities.
c. They indicate the profits that are divided among the financial institution's owners.
d. They indicate profitable banking practices.
e. If they are not maintained, banking regulators may shut down the bank.
.B
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The demand for computer programmers is inseparably tied to the supply of computer software
a. True b. False Indicate whether the statement is true or false
In 1986, OPEC countries increased their production of oil. This caused
a. the price level to rise. b. aggregate supply to shift right. c. unemployment to rise. d. None of the above is correct.
According to purchasing-power parity, if over the course of a year the price level in the U.S. rises more than in Canada, then which of the following rises?
a. the U.S. real exchange rate, but not the U.S. nominal exchange rate b. the U.S. nominal exchange rate, but not the U.S. real exchange rate c. the U.S. nominal exchange rate and the U.S. real exchange rate d. neither the real exchange rate nor the nominal exchange rate
For a given level of equilibrium GDP, a tight-money/easy-fiscal policy mix compared with easy-money/tight-fiscal policy mix implies a
A) lower interest rate. B) lower level of investment. C) higher level of taxation. D) lower level of government expenditures.