One trait a central bank has over other businesses including banks is that it:
A. receives all of its funding from the government.
B. doesn't have stockholders.
C. doesn't have a board of directors.
D. can control the size of its balance sheet.
Answer: B
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Suppose your neighbor owns a restaurant and boasts that he is able to turn a handsome accounting profit because of his low labor costs. He attributes this to the fact that he uses his sons and daughters as cooks and waiters
His point is that he offers them below-market wages. How would you respond to your neighbor's statement? What would you tell him to expect as his children continue to work for him while they are in college and beyond?
Jim is haggling with a car dealer over the sale price of a used car. When he entered the store he was the only customer. This means that
a. Jim has a better chance of having his offer accepted, since the seller does not have any outside offers b. Jim has lower chances of having his offer accepted, since the seller has more outside offers c. The disagreement value for the seller has increased d. Only A&C
The data in the table show the marginal costs and marginal benefits to a city for five different levels of pollution control.Quantity of Pollution AbatementMarginal CostMarginal Benefit900 tons$400,000$100,000800 tons300,000150,000700 tons200,000200,000600 tons100,000250,000500 tons50,000300,000Refer to the above table. What would cause the optimal level of pollution abatement to be 600 tons?
A. An increase in marginal benefits by $200,000 at each level. B. An increase in marginal costs by $150,000 at each level. C. A decrease in marginal costs by $150,000 at each level. D. A decrease in marginal benefits by $100,000 at each level.
Walmart wants to raise $250 million to finance the renovation of their retail stores, and the company wishes to raise the funds through indirect finance. Which of the following methods could it use?
A) It could issue $250 million in stock. B) It could sell $250 million in bonds. C) It could borrow $250 million from a bank. D) It could choose either A or B.