The concept of holding reserves, such as gold, that are less than the value of the total deposits
A) is known as fractional reserve banking.
B) has been illegal since the passage of the Financial Services Modernization Act of 1999.
C) is known as non-credit banking.
D) None of the above are correct.
Answer: A) is known as fractional reserve banking.
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The present value of benefits (PVB) is found as
a. the discounted value of benefits for a single period without adjusting for inflation b. ?(bt/[1+rs]t), with bt= Bt/(1 + p)t c. ?(bt/[1–rs]t), with bt= Bt/(1 + p)t d. ?(bt/[1+rs]t), with bt= Bt/(1 –p)t
Which of the following is a key characteristic of the long-run competitive equilibrium that distinguishes it from the short-run competitive equilibrium?
A. Free entry to reduce short-run profits, or free exit to reduce short-run losses. B. Economic profits are positive, but cannot be negative. C. Marginal revenue is greater than marginal cost. D. Average revenue is less than average cost.
Variable inputs are defined as any resource that:
A. varies with the size of the firm's plant. B. cannot be changed as output changes. C. can be changed as output changes. D. can be increased or decreased hourly.
What is the main difference between the law of demand and the price elasticity of demand?
Please provide the best answer for the statement.