Suppose a bank has checkable deposits of $100,000 and the required reserve ratio is 20 percent. If the bank currently has $100,000 in reserves, it could lend out as much as:
A. $100,000.
B. $400,000.
C. $80,000.
D. $20,000.
Answer: C
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The demand for food in poor countries is
A) inelastic and more inelastic than in rich countries. B) inelastic but more elastic than in rich countries. C) elastic but less elastic than in rich countries. D) elastic and more elastic than in rich countries.
The market demand for The Federalist Papers is likely to be more elastic than the market demand for a best-selling mystery novel
Indicate whether the statement is true or false
For term life insurance, the policy holder pays
A) premiums based on current interest rates. B) a constant premium. C) premiums that vary with mortality risk. D) constantly declining premiums.
Currency speculators are traders who seek to profit from a(n):
a. shift in global demand and supply patterns. b. increase in the price of oil. c. sudden shift in interest rates. d. exchange rate change by selling the currency expected to appreciate and buying the currency expected to depreciate. e. exchange rate change by selling the currency expected to depreciate and buying the currency expected to appreciate.