By holding highly liquid assets to guard against sudden large withdrawals, banks:
a. sacrifice safety
b. sacrifice profitability.
c. increase profitability.
d. diversify their portfolio.
e. earn more interest than they could on business loans.
b
You might also like to view...
List and explain the three factors that can increase labor productivity
What will be an ideal response?
Which of the following is least accurate in characterizing changes in retailing in the second half of the 19th century?
a. Large growth in the number of department stores b. Large growth in the number of chain stores c. Large growth in the number of "general stores" d. Large growth in the number of mail-order houses
There is general disagreement among economists about the role of advertising, but there is widespread agreement about the role of brand names on market efficiency
a. True b. False Indicate whether the statement is true or false
All else equal, a smaller elasticity of the supply curve to the other firms leads to a ________ individual firm's residual elasticity of demand
A) less elastic B) unit elastic C) more elastic D) zero