Assuming all excess reserves are loaned out, if the reserve ratio is 1 percent, the money multiplier will be equal to
A) 1. B) 10. C) 11. D) 100.
D
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Use the following graph for the milk market to answer the question below.
There would be excess production of milk whenever the price is
A. less but not greater than $2.00 per gallon. B. greater than $1.50 per gallon. C. less than $1.50 per gallon. D. greater but not less than $2.00 per gallon.
Organic food might be good for your health but in light of the 2008 downturn in the economy and falling incomes, consumers are buying less organic and more non-organic food. Based on these events, what is TRUE?
A) Organic food is a normal good and non-organic food is an inferior good. B) Organic food is an inferior good and non-organic food is a normal good. C) Organic food is a normal good and non-organic food is a normal good. D) Organic food is an inferior good and non-organic food is an inferior good.
Crowd funding can best be described as:
A) raising funds in a very large market B) raising small amounts of money from large numbers of people C) many firms competing for the same source of funds D) making funds available for a large number of business start ups
Commercial banks limit the adverse selection problem through ________
A) monitoring B) restrictive covenants C) screening D) moral hazard