If a bank needs to raise the amount of capital relative to assets, a bank manager might choose to
A) buy back bank stock.
B) pay higher dividends.
C) shrink the size of the bank.
D) sell securities the bank owns and put the funds into the reserve account.
C
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Household production, such as baking bread at home, is not included in GDP because it
A) has better quality than the bread in the store. B) has lower quality than the bread in the store. C) does not add anything of value to GDP. D) does not involve a market transaction. E) is not really production.
A savings bank is a depository institution that ________
A) sells shares which it uses to purchase shares in U.S. Treasury bills B) makes mostly home-purchase loans C) is owned by a social or economic group D) makes mostly consumer loans
Comparative advantage explains how two nations can benefit from trade
a. True b. False Indicate whether the statement is true or false
International trade will:
A. decrease total surplus, which creates a role for government. B. increase total surplus only if the country is a net-importer of a particular good. C. create more efficiency. D. increase total surplus only if the country is a net-exporter of a particular good.