A bank with $200 million in transaction deposits keeps $20 million in cash in the bank vault, $10 million in deposits at the Fed, and $10 million in government securities in the bank vault. Its total reserves equal
A. $30 million.
B. $235 million.
C. $20 million.
D. $200 million.
Answer: A
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Compared to the short-run supply curve of the industry with identical firms, the short-run supply curve of the differing cost industry will tend to be A) steeper at higher prices. B) flatter at higher prices. C) steeper at lower prices. D) flatter at lower prices.
A demand relationship in which a given percentage change in price will result in a less than proportionate percentage change in quantity demanded is
A) elastic. B) unit-elastic. C) inelastic. D) consistent with zero elasticity.
In the market for saving, the price is the:
A. inflation rate. B. real interest rate. C. nominal interest rate. D. relative price.