A banking system that provides people immediate access to their deposits, but that allows banks to hold only a portion of those deposits on reserve, is known as:
a. an excess reserve system.
b. a fractional reserve system.
c. the Fed.
d. the FDIC.
e. an asset-based system.
b
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The primary assets of a finance company are
A) municipal bonds. B) corporate stocks and bonds. C) consumer and business loans. D) mortgages.
An oligopolist charges a lower price than the short-run profit-maximizing price. Which newcomers would this action most likely stop from entering the market?
a. those with costs higher than P 1
b. those with costs at P 1
c. those with costs between 0 and P 1
d. those with costs less than ATC
Suppose that an early frost damages the California orange crop. As a result, the price of Texas oranges increases. Ceteris paribus, which one of the following statements best explains this situation?
A. The demand for California oranges fell because of the freeze, and this led to a higher demand for Texas oranges. B. The supply of California oranges decreased, causing the supply of Texas oranges to increase, which resulted in a higher price. C. The supply of California oranges decreased, causing the supply of Texas oranges to decrease, which resulted in a higher price. D. The supply of California oranges decreased, causing their price to increase, and thus causing the demand for Texas oranges to increase.
In the figure above, what can you deduce about the slope of the curve?
What will be an ideal response?