A bank's required reserves are calculated by multiplying ________
A) its deposits by the required reserve ratio
B) the sum of its deposits and cash in its vault by the required reserve ratio
C) cash in its vault by the required reserve ratio
D) the gold in its vault by the required reserve ratio
A
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If a firm produces in a perfectly competitive output market,
a. then it demands its resources in perfectly competitive input markets b. then it demands labor in a perfectly competitive labor market c. the type of market in which it demands labor may be perfectly competitive or imperfectly competitive d. the labor demand curve is the same as its product demand curve e. the labor demand curve facing the firm is perfectly elastic
Suppose Bond X has an original price of $1,000 and a coupon rate of 8% and therefore is worth $1,080 after a year. The market has now changed so that other bonds are selling with a coupon rate of 12%. How would you calculate the right price to pay for Bond X?
a. Calculate the dollar figure that would generate $1,120 at the current interest rate and pay no more than that for the bond. b. The right price for a bond is always the face value plus the interest rate for one year. c. With a 12% coupon rate, the bond’s face value is now $880, so pay no more than that for the bond. d. Calculate the dollar figure that would generate $1,080 at an interest rate of 12% and pay no more than that for the bond.
Which of the following would be categorized as "land"?
A) timber
B) human capital
C) buildings
D) entrepreneurship
Which of the following is TRUE for a firm in the long run?
A. Variable costs will initially increase and then decrease. B. All costs are variable costs. C. The law of diminishing marginal product holds. D. Variable costs will equal marginal cost at all output levels.