The reserves of financial institutions:
a. Are assets that financial institution's try to keep at the legal limit.
b. Are made up mainly of government securities and high quality corporate bonds.
c. Include the liability called "Borrowing from the central bank."
d. None of the above is correct.
e. Are the largest liability in a financial institution's balance sheet.
.A
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Which of the following could explain why the demand for table salt is inelastic?
A) Salt is a luxury for high-income consumers but a necessity for low-income consumers. B) Salt is a rare commodity. C) Salt is a luxury good. D) Households devote a very small portion of their income to salt purchases.
Which type of regulation applies to all firms in the economy, as opposed to only covering specific industries?
A) economic regulation B) social regulation C) rate regulation D) statutory regulation
Countries that have a trade surplus have a:
A. positive net capital outflow. B. positive net capital inflow. C. negative net capital outflow. D. positive foreign direct investment. AACSB: Reflective Thinking
If a 10 percent cut in the price of video rentals at "That's Rentertainment" causes a 15 percent increase in the quantity of rentals demanded, then
a. total revenue will decrease b. demand is price inelastic within that price range c. demand is price elastic within that range d. demand is unit elastic within that range e. total revenue will remain the same