If a bank has deposits of $250 million, reserves that total $30 million and has a required reserve rate of 10 percent:
A. the bank is short of required reserves.
B. the bank has excess reserves of $3 million.
C. the bank has excess reserves of $27.5 million.
D. the bank has excess reserves of $5 million.
Answer: D
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A) is a particular combination of consumption and leisure. B) only measures a quantity of goods and services, but not the amount of leisure. C) is a method of bringing home consumption goods. D) measures the quality of a particular good.
According to Lerner, if we do not know people's utility functions, we
a. cannot engage in redistributing incomes among people b. can still assume that the marginal utility of a dollar for the rich is higher than for the poor c. make less of a mistake by assuming that they are equal d. should let the market determine the distribution of income e. should assume they are unequal because it is the most likely
Foreign direct investment generally leads to technological advancements in poorer countries
a. True b. False Indicate whether the statement is true or false
Exchange rates determined by the forces of demand and supply are called
a. fixed exchange rates. b. floating exchange rates. c. equilibrium exchange rates. d. dirty exchange rates.