Banking regulation in the United States is strongly influenced by the large amount of __________ deposits and __________ assets banks hold
A) time; illiquid
B) time; liquid
C) checkable; illiquid
D) checkable; liquid
C
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Under rate of return regulation, a regulated firm has an incentive to
A) use an efficient amount of capital. B) set its price equal to its marginal cost. C) hide losses from bad debts. D) inflate its costs.
An example of a commitment device would be:
A. a swear jar that you and your friends agree must be paid $5 each time someone swears. B. putting a note on the cookie jar that you want to lose weight. C. buying yourself an ice cream after going to the gym. D. All of these are examples of commitment devices.
The overall trend in resource prices has been
a. upward. b. downward. c. constant. d. increasing exponentially.
Disposable personal income:
A. includes personal income taxes. B. excludes personal income taxes. C. excludes transfer payments. D. is income spent for personal items such as homes and cars.