Stocks and bonds are considered to be highly illiquid assets while real estate is considered to be a liquid asset
a. True
b. False
Indicate whether the statement is true or false
False
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The slope of the line on a line chart measures the rate of change in:
A) only the independent variable. B) only the dependent variable. C) the dependent variable as the independent variable changes. D) the independent variable as the dependent variable changes.
Big Alice Ice Cream Parlor reduced its price of an ice cream cone from $1 to 90 cents. Sales consequently increased from 1,000 cones per week to 1,050 . The approximate price elasticity is
a. 0.20. b. 0.46. c. 2.16. d. 5.00.
When members of an oligopolistic industry agree to collude, raising their product price substantially above average cost, the passage of time (months and years)
a. is usually needed for the members to solidify their cooperation. b. usually results in finer control of prices and markets by the group and larger profit margins. c. is likely to erode the agreement, as ways to cheat are developed by some participants and new entry is encouraged by the high price. d. seldom has any impact on the agreement, as long as the participants maintain high profit levels as a result of the agreement.
Assume that the required reserve rate is ten percent, banks want to hold excess reserves in an amount that equals three percent of deposits, and the public withdraws ten percent of every deposit in cash. An open market purchase of $1 million by the Fed will see banking system deposits increase by:
A. more than $1 million but less than $10 million. B. more than $10 million but less than $20 million. C. less than $1 million. D. exactly $1 million.