The practice of borrowing short and lending long

A) pools risk.
B) minimizes the cost of monitoring borrowers.
C) creates liquidity.
D) All of the above answers are correct.


C

Economics

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Excess reserves are the

A) amount of reserves held over what is desired. B) amount of reserves banks keep in their vaults. C) amount of reserves a bank holds at the Fed. D) amount of reserves the Fed requires banks to hold. E) same as the required reserves.

Economics

If all inputs are increased by 5 percent and output increases by 8 percent, then the

A) firm experiences constant returns to scale. B) long-run average cost curve slopes downward. C) long-run average cost curve shifts downward. D) firm experiences diseconomies of scale.

Economics

Suppose Wrentham Gold Miners & Co chooses the quantity of gold each of its mines will produce over the next 12 months. Assuming the market price of gold remains constant over the period, identify the correct statement about the firm's total revenue. a. Total revenue will vary with the price charged by the firm

b. Total revenue will be maximized when market price is less than average variable cost. c. The total revenue curve of the firm will be U-shaped. d. Total revenue will vary with the quantity produced by the firm.

Economics

Which statement is definitely true about shelter in the graph below?  

A. The demand curve is negatively sloped over the price range shown. B. It is an inferior good throughout the range shown. C. It is clearly a normal good throughout the range shown. D. The income and substitution effects must be shown before any of these statements can be definitely true.

Economics