The required reserves of a bank are:
a. held as deposits with the Federal Reserve System.
b. equal to its loans.
c. equal to its checkable deposits.
d. none of these.
a
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Compare and contrast production efficiency and allocative efficiency
What will be an ideal response?
During the recent past, production and income have grown faster than population in highly developed economies because
A. of the availability of expensive and ineffective birth control devices. B. of rapid technological advancements. C. accumulation of both physical and human capital has slowed down. D. famine, war, and pestilence have greatly reduced the population.
Many states had their own insurance fund to protect depositors. The critical problem with these state funds is:
A. they do not have regulators as knowledgeable as the regulators at FDIC. B. they are monopolies in their own state and extract extremely high prices for the insurance they provide. C. no state fund is large enough to withstand a run on all of the banks it insures. D. they are highly inefficient they cannot achieve the economies of scale a federal fund can achieve.
When economists say that the demand for labor is a derived demand, they mean that it is
A. related to the demand for the product or service labor is producing. B. based on the assumption that workers are trying to maximize their money incomes. C. dependent on government expenditures for public goods and services. D. based on the desire of businesses to exploit labor by paying below equilibrium wage rates.