Any reserves held by a bank above the amount of minimum legal reserves are called
a. total reserves.
b. required reserves.
c. fiat money.
d. excess reserves.
d
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Depositors have a strong incentive to show up first to withdraw their funds during a bank crisis because banks operate on a
A) last-in, first-out constraint. B) sequential service constraint. C) double-coincidence of wants constraint. D) everyone-shares-equally constraint.
Which of the following is not a condition required for a monopolist to price discriminate?
a. the demand curve facing the firm must be downward-sloping b. the firm must exhibit strong economies of scale c. there must be different groups of buyers with different price elasticities of demand d. the firm must be able to prevent reselling of the product e. the firm must have some market power
A contract containing an adjustment provision which allows the supplier to recover a fraction of his additional costs when input prices cross a certain level, is considered efficient because:
a. it reallocates the supplier's risk while checking his activities. b. it reallocates risks completely to the buyers. c. it allows the supplier to take up risks. d. it allows the buyers to partially reallocate their risks.
One difficulty of computing the value of GDP is that there are no market prices for
a. exports and imports. b. business investments. c. government goods and services. d. resource values.