The Argon Bank has $8 million in deposits and $1,600,000 in reserves. If the required reserve ratio is 20%, excess reserves are equal to
A. zero.
B. $80,000.
C. $320,000.
D. $640,000.
Answer: A
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The seven leaders of the Federal Reserve System headquartered in Washington, D.C. constitute the:
A. Board of Governors. B. Federal Reserve Bank of Washington, D.C. C. Federal Open Market Committee. D. Federal Economic Advisory Board.
At the time of the South Korean financial crisis, the government allowed many chaebol owned finance companies to convert to merchant banks. Finance companies ________ allowed to borrow abroad and merchant banks ________
A) were not; could borrow abroad B) were not; could not borrow abroad C) were; could borrow abroad D) were; could not borrow abroad
Mary and Jane are partners in a business. Their business is growing but has not yet reached the point where they can afford a new delivery truck. Jane owns an old truck that she has not been using. She decides to donate it to their business for free
A) This transaction (donation) involves no economic cost. B) This transaction involves both economic cost and accounting cost. C) This transaction involves economic cost but no accounting cost. D) This transaction involves no economic cost and no accounting cost.
Using Figure 1.5 above, you can tell that 
A. there is constant opportunity cost. B. there is increasing opportunity cost. C. there is unemployment. D. the technology does not exist to produce 6 units of soda and 1 unit of pizza.