Suppose all banks are subject to a uniform reserve requirement of 20 percent and that the Union Bank has no excess reserves. If a new customer deposits $50,000 . the bank could extend new loans up to a maximum of
a. $10,000.
b. $40,000.
c. $50,000.
d. $250,000.
B
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The current account in the BOP records:
a. all money flowing between countries. b. a nation's yearly exports and imports of goods and services. c. only the transactions involving capital goods in international trade. d. only the transactions involving consumer goods in international trade. e. only those goods and services purchased on credit in international transactions.
Althea is a student in your class. Althea wears a perfume called Essence of Efficiency. Bob really likes the scent of this perfume, and is disappointed on days when Althea doesn't wear it. Cathy is mildly allergic to this perfume. Her eyes water and her nose becomes runny when Althea comes to class wearing this perfume. Cathy is fine otherwise. This is a story about
a. too much perfume being produced b. too little perfume being produced c. an incomplete market d. inadequate allocation of responsibility e. market failure
A decision maker can always make the best choice by:
A. including sunk costs as part of marginal costs. B. including sunk costs as part of total costs. C. ignoring sunk costs. D. subtracting sunk costs from total benefits.
In sequential games, an especially important part of strategic behavior is to:
A. "think forward, work backward." B. "think forward, act backward." C. "think backward, work forward." D. "think backward, act forward."