In an attempt to bring lenders and borrowers together following the financial crisis of 2008, the Federal Reserve made a large amount of new funds available to financial markets. Any of these new funds that were obtained by banks but were not loaned out
would be classified as ________ of the banks.
A) required reserves
B) excess reserves
C) deposits
D) liabilities
Answer: B
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An example of an ongoing expense for a toy company would be buying:
A. advertising for their products, and would be included in total cost. B. a new factory, and would be excluded from total cost. C. a delivery truck, and would be included in total cost. D. None of these is true.
If the Fed purchases securities in the amount of $100,000 from First Union Bank, then the
A) liabilities of First Union decrease by $100,000. B) assets of First Union Bank change in composition but not in amount. C) assets of the Fed decrease by $100,000. D) liabilities of the Fed change in composition but not in amount. E) assets of First Union Bank decrease by $100,000.
To maximize profit, a firm hires the quantity of labor that makes the ________ of labor equal to the ________
A) value of marginal product; wage rate B) total revenue; total cost of labor C) marginal product; total cost of labor D) marginal product; marginal revenue
What point is the profit maximizing level of output?
A. MC=MR B. MR=ATC C. MC=ATC D. D=MC