Why does a bank sometimes hold excess reserves?
What will be an ideal response?
Ans: to be sure they can meet their customers' demands
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A firm operating in a competitive market will stay in business in the short run so long as the market price exceeds the firm's average total cost; otherwise, the firm will shut down
a. True b. False Indicate whether the statement is true or false
Which of the following is not true about excess reserves?
A. They change when the reserve requirement changes. B. They are equal to the required reserve ratio times transactions deposits. C. They are bank reserves beyond what the bank is required to hold. D. They represent the dollars an individual bank can lend.
Which statement about public assistance is false?
A. It is aimed solely at the poor. B. It has failed completely. C. It has not ended poverty. D. It has fostered a permanent underclass.
In the housing market, rents serve the purpose of
A) making landlords rich. B) rationing the availability of existing housing. C) providing an entry by the government into the housing market. D) increasing tax collections by the community.