Which of the following is considered a liability to a bank?
A. the bank's buildings and equipment
B. the bank's loans
C. reserves
D. demand deposits
Answer: D
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A study conducted by a research firm revealed that RiteCure Health Insurance charges higher premiums than most of its rivals. The study also revealed that unlike its rivals, 60% of RiteCure's customers have chronic illnesses
a) What is the link between these two findings? b) What is likely to happen if the premium continues to rise?
For infinitely repeated games in which the players follow a tit-for-tat strategy, which one of the following outcomes is NOT possible?
A) The players cooperate with one another until someone decides to not cooperate, and then the other players will not cooperate for some period of time. B) There can be dominant strategies. C) If the information about another player's action is limited, then some cooperative actions may be incorrectly interpretted as "not cooperate." D) All of the above are possible outcomes.
In a two regressor regression model, if you exclude one of the relevant variables then
A) it is no longer reasonable to assume that the errors are homoskedastic. B) OLS is no longer unbiased, but still consistent. C) you are no longer controlling for the influence of the other variable. D) the OLS estimator no longer exists.
What is the effect of a reduction in the price of steel on the equilibrium price and quantity of automobiles?
a. Both equilibrium price and equilibrium quantity rise. b. Both equilibrium price and equilibrium quantity fall. c. Equilibrium price rises and equilibrium quantity falls. d. Equilibrium price falls and equilibrium quantity rises. e. Both equilibrium price and equilibrium quantity remain unchanged.