Banks that suffered significant losses in the 1980s made the mistake of
A) holding too many liquid assets.
B) minimizing default risk.
C) failing to diversify their loan portfolio.
D) holding only safe securities.
C
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In one week, Tetah can knit 15 sweaters or bake 480 cookies. The opportunity cost per sweater for Tetah is
a. $480 b. 480 cookies c. 32 cookies d. 1/32 of a cookie e. 15 cookies
Answer the following questions true (T) or false (F)
1. The major macro variables affecting economic conditions in production agriculture include the rate of interest. 2. The so-called "real economy" includes the money market. 3. The budget deficit in the current period is financed by the net sales of government securities by the U.S. Treasury department.
The main asset held by a central bank in its role as the bankers' bank is:
A. foreign exchange reserves. B. loans. C. securities. D. currency.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The best point for society would be
A. either Point B or Point C, as the total amount being produced at either of these points is approximately the same. B. at any of the labeled points, as all of the points represent an efficient allocation of resources. C. Point C, as at this point there are approximately equal amounts of LCD and OLED televisions being produced. D. indeterminate from this information, as we don't have any information about the society's desires.