Banking under a system of fractional reserves is a(n)
a. inherently risky business that is unsafe regardless of bank management.
b. inherently risky business that is relatively safe under prudent management.
c. fairly safe business unless management is irresponsible.
d. fairly safe business with no unusual risks.
b
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An expansionary monetary policy may be frustrated if the ________.
A. saving schedule shifts downward B. net export schedule shifts upward C. money demand curve shifts to the left D. investment demand curve shifts to the left
Regarding fixed costs of entry
A) both incumbents and potential entrants are affected by them. B) potential entrants are affected by them while incumbents are not. C) neither incumbents nor potential entrants consider them. D) incumbent's decisions are affected by them, while the potential entrant ignores them.
Amusement Park / Cola Tie-in The Six Flags Over Texas amusement part in the middle of the Dallas-Fort Worth Metroplex has a tie-in marketing campaign with Coca-Cola during the summer. In local grocery stores, some Coke cans offer $5 off admission to the park. Why does Six Flags limit these cans so that none are sold further than 20 miles from the park?
Exhibit 3A-1 Comparison of Market Efficiency and Deadweight Loss
As shown in Exhibit 3A-1, if the market is in equilibrium, then total surplus is represented by:
A. ABEFD + EFG B. ABEC + CEFD C. CDFE + EFG D. ABEFD - BEF