Holding large amounts of bank capital helps prevent bank failures because
A) it means that the bank has a higher income.
B) it makes loans easier to sell.
C) it can be used to absorb the losses resulting from bad loans.
D) it makes it easier to call in loans.
C
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A country producing a combination of 9 units of guns and 6 units of butter would be _____________ (outside/on/inside) the production possibilities curve.
The decision whether to work at any given wage is an application of the
A. scarcity principle. B. cost-benefit principle. C. principle of comparative advantage. D. principle of increasing opportunity cost.
Which of the following would shift the AS curve downward?
a. A decrease in the price level b. A decrease in world oil prices. c. An increase in world oil prices. d. A natural disaster that raises unit costs for all firms. e. A loss of technological capability.
You sell your good in a perfectly competitive market where the market price is $33.00. When you sell 100 units your total revenue is $3,300. When you sell 101 units:
A. total revenue increases by less than $33. B. total revenue increases by exactly $33. C. total revenue increases by more than $33. D. total revenue may increase or decrease.