If a bank’s assets are $500 million and its liabilities are $380 million, then its net worth (bank capital) is ____________________. If the bank’s assets then rise by 6 percent at the same time that its liabilities rise by 5 percent, the percentage change in the bank’s net worth will be approximately _______________ percent.
A. $440 million; 10.2
B. $120 million; 1.2
C. $100 million; 11.2
D. $120 million; 9.2
Answer: D. $120 million; 9.2
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In the quantity theory of money, the assumption that aggregate output is fixed is based on the view that ________
A) wages and prices are perfectly flexible in the long run B) the velocity of money is constant in the short run C) the demand for real money balances is proportional to income D) changes in the quantity of money lead to proportional changes in the price level E) none of the above
Wal-Mart's store managers have the authority to stock items and price them to satisfy localized demand. Which of the following properties of this retail store is illustrated here?
a. Relationship with employees b. Regional relationships c. Centralized decision making d. Decentralized decision making
What are the three noteworthy labor market trends that Americans have experienced for about two decades?
What will be an ideal response?
A recession occurs when ________, when ________, or when both of these occur.
A. potential output grows rapidly; actual output equals potential output B. potential output grows rapidly; actual output falls below potential output C. potential output grows slowly; actual output rises above potential output D. potential output grows slowly; actual output falls below potential output