Which of the following statements is true?
A) If a bank lends a sum of $600 to a firm, the sum is a part of the bank's liability.
B) If a bank lends a sum of $200 to a household, the sum is a part of the bank's liability.
C) If a firm deposits a sum of $500 in a bank, the sum is a part of the bank's assets.
D) If a firm deposits a sum of $500 in a bank, the sum is a part of the bank's liability.
D
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The price of good X is $2.00 and the price of good Y is $1.00. Last year, the price of good X was $1.00 and the price of good Y was $2.00. If a consumer has $100, draw there their budget line for each year (label them accordingly). Add as many indifference curves as needed to show a situation in which the consumer is no better or worse off this year than they were last year. Be sure to label their optimal baskets for both years. Explain why what you have drawn is correct.
What will be an ideal response?
Other things remaining the same, the ________ the real interest rate, the ________
A) higher; greater the demand for loanable funds B) higher; greater the quantity of loanable funds demanded C) lower; greater the quantity of loanable funds demanded D) lower; greater the demand for loanable funds E) lower; greater the quantity of loanable funds supplied
A firm should be transparent, meaning
a. the windows at headquarters should be cleaned regularly b. if executives lie during a stockholder meeting, people should be able to see right through them c. someone should be able to look at the books and the balance sheet and tell exactly what's going on d. None of the answers is correct e. All of the answers are correct
Which of the following is not a factor explaining how deficits on current account develop?
a. high interest rates b. budgetary deficits c. negative balance of payments d. low productivity e. the country's popularity because of the strength and stability of its economy