A bank's assets consist of $1,000,000 in total reserves, $2,100,000 in loans, and a building worth $1,200,000 . Its liabilities and capital consist of $3,000,000 in demand deposits and $1,300,000 in capital. If the bank is required to keep reserves equal to one-third of deposits, what is the level of the bank's excess reserves? How much money could the excess reserves be used to create in the
banking system as a result?
a. zero; zero
b. $300,000; $300,000
c. $300,000; $900,000
d. $700,000; $2,100,000
a
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A) its price. B) tastes and preferences. C) supply. D) income.
The cost to a firm of producing one more unit of output
A. is significantly less than the firm's price for purely competitive firms operating in long-run equilibrium. B. usually equals the firm's price for monopolistically competitive firms. C. is the firm's marginal cost. D. usually exceeds the firm's price.
A union model changes the market form from that of perfect competition to that of a
A. monopsony. B. oligopoly. C. monopoly. D. monopolistic competition.
A country would tend to experience currency depreciation relative to other countries if: a. the profitability of investments in other countries increases relative to that country
b. people in the foreign currency markets expect the value of the currency to fall in the near future. c. the foreign demand for its exports decreases. d. any of the above occurs.