Suppose Marquette Bank and Trust has $10 million in total deposits and the required reserve ratio is 7%. How many dollars must the bank keep in its vaults or on deposit at a Federal Reserve Bank?
A) $9.3 million
B) $7 million
C) $930,000
D) $700,000
E) None of the above—it's the bank's own choice.
D
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Which of the following is included in the M2 definition of the money supply?
A. Cash and currency B. Checkable deposits C. Money market deposit accounts D. Money market mutual funds E. All of these responses are correct.
Market failure exists whenever
A. The government intervenes in the market. B. Income distribution is unequal. C. Government intervention makes the income distribution worse. D. The market generates a suboptimal outcome of income distribution.
If transactions costs are very high and auctions for pollution permits are not possible, which of the following is the most effective way to deal with pollution?
A. Require all polluters to limit their pollution to a certain level with regulation B. Allow the parties to negotiate C. Give subsidies to reduce pollution D. Tax pollution
The relative prices of wool, cocoa, aluminum, rice, cotton, and sugar declined by more than half during the 20th century.
Answer the following statement true (T) or false (F)