A fractional reserve banking system:
A. is susceptible to bank "panics" or "runs."
B. prevents money creation through the lending process.
C. only tends to exist in developing economies.
D. prevents the Federal Reserve from influencing the money supply.
A. is susceptible to bank "panics" or "runs."
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When money is used to compare the relative price of a burrito and a taco, money is being used as a
A) medium of exchange. B) store of value. C) measurement of inflation. D) unit of account. E) token of bartering.
If a profit-maximizing, perfectly competitive firm is making only a normal profit in the short run, then the firm is in:
a. disequilibrium. b. equilibrium where MR exceeds minimum ATC. c. equilibrium where MR equals minimum AVC. d. equilibrium where P = AFC. e. equilibrium where P = ATC
A liability to a bank is
a. something that the bank owns. b. something that the bank owes. c. something a customer owes the bank. d. the value of bank buildings and hardware.
As discussed in the Case in Point on the degree of crowding out of Canadian private investment as a result of government expenditures from 1961-2000, Professor Baotai Wang concluded that
A) all types of government spending—spending on health and education, on infrastructure and capital, on defense, on debt services, and on government and social services—lead to crowding out. B) government expenditures that increased human capital, such as spending on health and education, are more likely to lead to crowding out than other types of government expenditures. C) crowding out depends on the nature of spending done by the government. D) government expenditures, on infrastructure and capital are more likely to lead to crowding in because they expand a nation's capital stock