If the required reserve ratio is 0.25 and the First National Bank holds $10 million in demand deposits and $2.5 million in reserves, how much more money is the bank capable of creating?
a. $0
b. $0.625 million
c. $1.875 million
d. $2.5 million
e. $10 million
A
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John and Mary work eight hours at a bakery. John can decorate either 10 ice-cream cakes or 4 wedding cakes; Mary can decorate either 8 ice-cream cakes or 2 wedding cakes. According to this scenario
A) Mary has the absolute advantage in decorating wedding cakes. B) John has the absolute advantage in decorating wedding cakes. C) Mary has the comparative advantage in decorating wedding cakes. D) John has the comparative advantage in decorating ice-cream cakes.
An important function of commercial banks is to _____
a. print new currency b. issue fiat money c. mint coins d. redeem currency for precious metals e. make loans
Greater entrepreneurship in the economy will shift the aggregate:
a. supply curve rightward. b. supply curve leftward. c. demand curve rightward. d. demand curve leftward.
Refer to the information and assume the stadium capacity is 5,000. If the Mudhens' management charges $7 per ticket:
A. some fans who want to see the game will find that tickets are not available.
B. there will be 2,000 empty seats.
C. there will be 1,000 empty seats.
D. the game will be sold out.