Answer the next question based on the following consolidated balance sheet for the commercial banking system. Assume the required reserve ratio is 12 percent. All figures are in billions of dollars.AssetsLiabilities & Net WorthReserves$60 Checkable Deposits$150Loans100 Stock Shares135Securities25 Property100?Refer to the above data. The commercial banking system has excess reserves of:
A. $42 billion.
B. $32 billion.
C. $60 billion.
D. $36 billion.
Answer: A
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The following table provides data for an economy in a certain year.Consumption expenditures50Imports40Government purchases of goods and services20Construction of new homes and apartments30Sales of existing homes and apartments40Exports50Government payments to retirees10Household purchases of durable goods20Beginning-of-year inventory10End-of-year inventory20Business fixed investment30Given the data in the table, compute the government purchases component of GDP.
A. 20 B. 30 C. 10 D. 40
Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. A bundle of goods that Country A could potentially make would be:
A. (1,000 iPods, 500 tablets). B. (500 iPods, 500 tablets). C. (500 iPods, 250 tablets). D. (750 iPods, 150 tablets).
An upward-sloping labor supply curve means that
a. workers prefer to buy more leisure time when their incomes increase. b. workers prefer to supply less labor when wages are high. c. an increase in the opportunity cost of leisure leads workers to increase the quantity of labor they supply. d. All of the above are correct.
Which of the following is a major reason why the Medicare program is in such financial trouble?
A) Workers are not paying enough into the program. B) The government set reimbursement rates too high. C) Because medical services are subsidized by the government, both consumption by the elderly and the cost of services have increased. D) There is a shortage of medical school applicants.