If a bank had demand deposits of $50 million and it faced a 25 percent required reserve ratio, it would be required to have how many reserves?
a. $50 million
b. $37.5 million
c. $25 million
d. $12.5 million
d
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The federal funds rate is closely tied to many interest rates on many types of loans. Which one is the exception?
a. Auto loan rates b. Adjustable rate mortgages c. Adjustable rate home equity loans d. 30-year Treasury bonds e. Business loans
Marlene earns a monthly net income of $1,000 for herself and her three school-age children, which puts her family well below the poverty line. Each month she spends $500 on rent, $200 on utilities, and about $150 on school supplies, clothes, shoes, and after-school care for her children. This leaves her with about $250 to spend on nutritionally adequate food for the family each month. Would Marlene qualify for the Supplemental Nutrition Assistance Program (SNAP)?
a. Because Marlene has less than 30% of her income available for a nutritionally adequate diet for her family, she would qualify for SNAP. b. Because Marlene earns a monthly income of $1,000, she is not eligible for SNAP but might be eligible for the Women, Infants, and Children (WIC) program. c. Marlene is not eligible for SNAP, but she is eligible for Temporary Assistance for Needy Families (TANF); this will mean she is caught in the poverty trap. d. While Marlene is not herself eligible for SNAP, her children are eligible for the free breakfast and lunch program at their school, which will provide them with a nutritionally adequate diet.
Suppose you work in a human relations office, and an employee, Ariana, comes to you with a set of statistics she has gathered about your company. Which of these statistics might indicate wage discrimination?
a. Fewer minorities were interviewed than whites. b. There are ten percent more males than females in management. c. Female mechanics earn ten percent less than male mechanics. d. Technicians make fifty percent more than janitors.
The price elasticity of supply tells us:
A. in which direction the quantity supplied changes as we move along the supply curve. B. how quickly the supply will respond to a change in price. C. the magnitude of shift in the supply curve in response to a change in price. D. the percentage change in quantity supplied when the price of the good changes by one percent.