A normal good is defined as a good for which the demand curve
A) shifts leftward as income increases.
B) shifts rightward as income increases.
C) slopes downward to the right.
D) is perfectly price elastic.
B
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Everything else held constant, in the market for reserves, when the federal funds rate is 3%, increasing the interest rate paid on excess reserves from 1% to 2%
A) lowers the federal funds rate. B) raises the federal funds rate. C) has no effect on the federal funds rate. D) has an indeterminate effect on the federal funds rate.
Refer to the payoff matrix below. The Set High Price/Set High Price outcome is the ________.
A) Nash Equilibrium
B) cooperative equilibrium
C) pure -strategy Nash Equilibrium
D) dominant strategy equilibrium
A bank has $7 million in checkable deposits and $1.2 million in total reserves. If the required reserve ratio is 10 percent, then the bank has
A) required reserves of $700,000. B) excess reserves of $500,000. C) excess reserves of $1,080,000. D) required reserves of $120,000. E) a and b
What are the major assets and the major claims (liabilities) on a commercial bank’s balance sheet?
What will be an ideal response?