Use the following balance sheet for the ABC National Bank in answering the next question. Assume the required reserve ratio is 20 percent.AssetsLiabilities & Net WorthReserves$27,000 Checkable Deposits$110,000Loans50,000 Stock Shares200,000Securities33,000 Property200,000?Refer to the above data. This bank can safely expand its loans by a maximum of:
A. $5,000.
B. $12,000.
C. $7,000.
D. $25,000.
Answer: A
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If an individual or family began at age 25 paying funds into a tax-free investment account or pension earning a 7 percent real return, how much would they have to save annually in order for the funds to be worth a million dollars (measured in the purchasing power of today's dollar) when they reach age 65?
a. approximately $5,000 annually b. approximately $10,000 annually c. approximately $20,000 annually d. approximately $50,000 annually
If a product can be produced by a natural monopoly, society will benefit in the form of lower prices if the monopolist is broken up into several smaller firms
a. True b. False Indicate whether the statement is true or false
Average variable cost is total variable cost:
A. divided by input. B. multiplied by output. C. divided by output. D. multiplied by price.
A perfectly elastic demand curve
A. has a slope of -1. B. shows that a slight change in income will lead to a large reduction in price. C. shows that a slight increase in price will reduce quantity demanded to zero. D. is a vertical line drawn across from the quantity axis.