Stealth bank holds deposits of $200 million. It holds reserves of $15 million. It has purchased government bonds worth $75 million. The current value of its loans, if sold at market value, is $130 million. What is the value of the Stealth bank’s liabilities?
a. $20 million
b. $200 million
c. $5 million
d. $330 million
b. $200 million
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
First-mover advantage is a characteristic of
a. A simultaneous-move game b. A dominant strategy c. A sequential-move game d. A Nash equilibrium
Bigness, or large firms, may benefit consumers in which of the following ways?
a. Larger firms usually charge lower prices than smaller firms. b. Larger firms with monopoly power definitely have greater incentive to be efficient and innovative. c. Larger firms may take advantage of economies of scale and scope. d. Larger firms are more responsive to consumers' desires.
Refer to the table below. How many euros can be bought for $44 at the equilibrium exchange rate?
The following table gives hypothetical data on the dollar price of Euros.
A. 10
B. 20
C. 30
D. 40