For a bank to earn as much profit as possible, its excess reserves should be:
A. equal to its required reserves.
B. as small as possible.
C. less than its vault cash.
D. growing at a constant rate.
Answer: B
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The amount of time during which at least one input cannot be adjust is the
A. length of the long-run period. B. length of the short-run period. C. time period when all costs are fixed. D. end of the firm’s operations.
Why is price less than marginal revenue for a monopolist?
What will be an ideal response?
Economists assume maximizing efficiency over other goals:
A. is a guiding principle of policy-making. B. is always the best approach. C. should never be followed. D. may not bring about the best outcome for society.
Warrensburg is a small college town in Missouri. At the end of August each year, the market demand for fast food in Warrensburg
a. increases. b. decreases. c. remains constant, but we observe a movement downward and to the right along the demand curve. d. remains constant, but we observe a movement upward and to the left along the demand curve.