For a bank to have lending power, its required reserves must:
a. be smaller than its legal reserves.
b. exceed its legal reserves.
c. be smaller than its excess reserves.
d. exceed its excess reserves.
e. exceed its vault cash.
a
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Bill loses his job as a loan officer when the bank he works for is bought up by a larger financial institution. Bill has the skills necessary to find a new job, so as Bill searches for work he is best considered an example of
A) frictional unemployment. B) structural unemployment. C) cyclical unemployment. D) a discouraged worker.
Entrepreneurship is typically identified with which of the following?
a. professionalism and dedication b. risk-taking and creativity c. impulsiveness and leadership d. organization and sense of humor e. boring and rich
Which of the following is most likely to be an implicit cost of production?
a. property taxes on a building owned by the firm b. transportation costs paid to a trucking supplier c. rental payments for a building utilized by the company and rented from another party d. interest income foregone on funds invested in the firm by the owners
The natural rate of unemployment is calculated by adding together the ______ rates of unemployment.
a. cyclical and frictional b. cyclical and structural c. frictional and structural d. cyclical, frictional, and structural