It's as simple as this: Bankers hope to make profit by
a. holding people's money at low interest rates and lending it out at higher interest rates
b. holding people's money at high interest rates and lending it out at lower interest rates
c. charging for bank services such as check clearing and ATM services
d. keeping excess reserves in case of a bank run
e. charging people to use demand deposit accounts
A
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The graph illustrates the supply of sweaters. A fall in the price of sweaters brings
A) a decrease in the quantity supplied of sweaters. B) a movement along the supply curve. C) a shift of the supply curve. D) Both answers A and B are correct. E) Both answers B and C are correct.
Most new settlement in the West came from homesteads
Indicate whether the statement is true or false
The reserves of financial institutions:
a. Are made up mainly of government securities and high quality corporate bonds. b. Are assets that financial institutions try to maximize. c. Are assets that financial institution's try to keep at the legal limit. d. None of the above is correct. e. Are the largest liability in a financial institution's balance sheet.
Which of the following is a correct definition of marginal cost (MC)?
a. It is the added cost that results from hiring one more employee. b. It is the increase in the average cost that results from producing one more unit of a good. c. It is the decrease in profits that results from selling another unit of a good. d. It is the cost per unit of a good produced -- i.e., total cost divided by quantity. e. It is the added cost that results from producing one more unit of a good.