Which of the following helps explain why depositors sometimes put their funds in demand deposits rather than NOW accounts?
A) Demand deposits pay interest, whereas NOW accounts do not pay interest.
B) Businesses may not hold NOW accounts.
C) Checks may be written against demand deposits, but not against NOW accounts.
D) Demand deposits are more liquid than NOW accounts.
B
You might also like to view...
How many dollars would it cost to buy an Edinburgh Woolen Mill sweater costing 50 British pounds if the exchange rate is 1.25 dollars per one British pound?
A) 50 dollars B) 60 dollars C) 70 dollars D) 62.5 dollars E) 40 British pounds
When there few close substitutes available for a good, demand tends to be
A) perfectly inelastic. B) perfectly elastic. C) relatively inelastic. D) relatively elastic.
Because a public good creates benefits everyone shares, individuals are generally very willing to bear the cost of providing the good
Indicate whether the statement is true or false
Regulatory commissions may focus on establishing a "fair-return" price to be charged by a monopolist. Under this policy, the monopolist would earn:
a. positive economic profits. b. zero economic profits. c. negative economic profits. d. monopoly profits.