If depositors lose confidence in their bank and immediately demand their money back, banks ________ pay all the depositors because ________ of their deposits are kept as cash reserve
a. would; all
b. would not; all
c. would; only a fraction
d. would not; only a fraction
d
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The above figure shows the market for labor. The employer is a monopsony. If a minimum wage is set at $10 per hour, which of the following will occur?
A) The firm will pay $5 per hour. B) The firm will pay $10 per hour. C) The firm will pay $15 per hour. D) The firm will hire less than 400 hours of labor.
All of the points inside a production possibilities frontier are ____; all of the points outside the production possibilities frontier are ____.
A. efficient; inefficient B. optimal; irrational C. attainable; unattainable D. rational; zero-cost E. unattainable; efficient
In a long-run equilibrium,
a. excess capacity applies to monopolistically competitive firms but not to competitive firms. b. zero economic profit applies to competitive firms but not to monopolistically competitive firms. c. markup over marginal cost applies to both monopolistically competitive and competitive firms. d. product variety externalities apply to both perfectly competitive firms and monopolistically competitive firms.
If an economy is operating inside its production possibilities curve for tanks and bread:
a. scarcity does not exist
b. all resources are being used efficiently.
c. production of bread can only increase by sacrificing the production of tanks.
d. production of bread and tanks can both increase.