Which of the following statements is correct?
A. The actual reserves of a commercial bank equal its excess reserves minus its required
reserves.
B. A bank's liabilities plus its net worth equal its assets.
C. When borrowers repay bank loans, the supply of money increases.
D. A single commercial bank can safely lend a multiple amount of its excess reserves.
B. A bank's liabilities plus its net worth equal its assets.
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Which of the following is ALWAYS true for a perfectly competitive firm?
A) P = MR B) P = ATC C) MR = ATC D) P = AVC
The Social Security Act was passed during the administration of President ______________________.
Fill in the blank(s) with the appropriate word(s).
If financial intermediaries did not have the ability to pool the resources of small savers:
A. the risk associated with lending would decrease. B. the economy would grow faster. C. borrowers needing large amounts of money would find it more costly to obtain the funds. D. people would likely save more.
Under the gold standard, a country had little control over its own money supply.
Answer the following statement true (T) or false (F)