Imagine that Odyssey National is a brand new bank, and that its required reserve ratio is 10 percent. If it accepts a $1,000 deposit, then its excess reserve balance will be:
A. $0.
B. $90.
C. $100.
D. $900.
Answer: D
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Industrial organization is the study of
a. how labor unions organize workers in industries. b. which managers are the most successful. c. how industries organize for political advantage. d. how firms' decisions regarding prices and quantities depend on the market conditions they face.
The Monetary Control Act of 1980 extended the Fed's authority to:
A. impose required-reserve ratios on all depository institutions. B. control the discount rate. C. control the federal funds rate. D. carry out a massive federal bailout of failed savings and loan institutions.
Which statement is true?
A. Only the poor are hurt by inflation. B. During times of inflation the nominal interest rate is considerably higher than the real interest rate. C. People living on fixed incomes are generally helped by inflation. D. None of the statements are true.
Which of the above shows the correct relationship between demand and marginal revenue for an imperfectly competitive firm?
A. A B. B C. C D. D