The balance sheet below is for the First Federal Bank. Assume the required reserve ratio is 20 percent.
Refer to the above information. This bank can safely expand its loans by a maximum of:
A. $20,000
B. $40,000
C. $100,000
D. $200,000
B. $40,000
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The downward slope of a demand curve
A) represents the law of demand. B) shows that as the price of a good rises, consumers increase the quantity they demand. C) indicates how the quantity demanded changes when incomes rise and the good is a normal good. D) indicates how demand changes when incomes rise and the good is a normal good. E) indicates how demand changes when the price changes and the good is a normal good.
The duration of a coupon bond increases
A) the longer is the bond's term to maturity. B) when interest rates increase. C) the higher the coupon rate on the bond. D) the higher the bond price.
A worker who loses a job at a call center because business firms switch the call center to another country is an example of:
A. cyclical unemployment. B. disguised unemployment. C. frictional unemployment. D. structural unemployment.
(Advanced analysis) If S = -60 + .25Y and I g = 60, where S is saving, I g is gross investment, and Y is gross domestic product (GDP), then the equilibrium level of GDP is:
A. $200. B. $320. C. $360. D. $480.