A reserve ratio of 0.10 means that a bank can lend an amount equal to:
A. 90 percent of its deposit liabilities.
B. 10 percent of its excess reserves.
C. 90 percent of its excess reserves.
D. 10 percent of its deposit liabilities.
Answer: A
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In July, market analysts predict that the price of gold will rise in August. What happens in the gold market in July, holding everything else constant?
A) The supply curve shifts to the right. B) The demand curve shifts to the left. C) The quantity demanded and the quantity supplied increase. D) The supply curve shifts to the left.
The Securities and Exchange Commission and the Federal Aviation Administration are examples of agencies engaged in
A) the regulation of natural monopolies. B) the regulation of nonmonopolistic industries. C) social regulation. D) health and safety regulation.
A marginal adjustment only refers to a minor change
a. True b. False
Economists use the terms resource and input as synonyms
Indicate whether the statement is true or false