One reason a bank's officer may be reluctant to write off a past-due loan is that it will:
A. increase the bank's liabilities and assets, requiring more capital to be held.
B. make the bank's accounts less transparent.
C. decrease the bank's assets and capital.
D. increase the bank's liabilities.
Answer: C
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If the expenditure multiplier is 10 and investment spending decreases by $1,000 billion, what will be the change in GDP?
a. -$10,000 b. $2,500 c. $1,000 d. $10,000 e. -$1,000
In 2011, the poverty rate in the United States was 15 percent. This means that 15 percent
a. of the population had a total family income that fell below the poverty line. b. of the population had a total family income that was above the poverty line. c. of the population had a total family income below $10,000. d. of the population had a total family income above $50,000.
If Mellon Bank has demand deposits of $6 billion and excess reserves of $50 million, and the reserve requirement is 10%, the bank's actual reserves are
A. $550 million. B. $600 million. C. $650 million. D. $1 billion.
The United States generally has a comparative advantage in the development of technology because it has:
A. patent laws, which no other country has. B. large amounts of natural resources. C. a disproportionate share of the world's best research universities. D. the greatest need for new technology.