The financial capital of a firm includes the:
a. service provided by its accountants
b. credit cards provided to its top executives.
c. equity and bonds issued by it.
d. loans accepted from banks.
e. computers purchased for its office staff.
c
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The opportunity cost of holding money is
a. the dollar cost necessary to change other assets into money b. the time cost of accessing funds c. the value of the goods and services a person is able to obtain with the money d. the interest a person could have earned by holding other forms of wealth instead e. zero, because opportunity costs only apply to real assets, goods and services
All actions and purchases, even those of wealthy people, involve a sacrifice
a. True b. False Indicate whether the statement is true or false
Ceteris paribus, for a farmer, corn and wheat are
A. Substitutes in production. B. Unrelated in a farmer's decision. C. Complements in production; by-products. D. None of the choices are correct.
Suppose the required reserve ratio is 0.20. Total bank deposits are $200 million and the bank holds $50 million in reserves. How much more money could the bank create if it does not hold excess reserves?
A. $25 million B. $50 million C. $5 million D. $30 million