Financial regulators set capital requirements for banks. One characteristic about these requirements is:
A. the riskier the asset holdings of a bank, the more capital it will be required to have.
B. the amount of capital required is inversely related to the amount of assets the bank owns.
C. every bank will have to hold the same level.
D. the more branches a bank has, the more capital it must have.
Answer: A
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The above figure definitely shows
A) a long-run equilibrium for a monopolistically competitive firm. B) an industry with few firms. C) a long-run equilibrium for a perfectly competitive firm. D) a long-run equilibrium for a perfectly competitive market. E) a short-run equilibrium for a monopoly.
The above figure shows the supply and demand curves for rice in the U.S. and in Japan. Assume there is no trade between the two countries. If bad weather causes the supply curves in each country to shift leftward by the same amount, then
A) the price will increase the same amount in both countries. B) the price will decrease the same amount in both countries. C) the price will increase more in Japan than in the U.S. D) the price will decrease more in Japan than in the U.S.
In 2015, the labor force participation rate was 62.6 percent. This means that:
A. 62.6 % of all working age people wanted a job. B. there was 37.4 % unemployment. C. 62.6 % of all working age people were employed. D. only 62.4 percent of labor force was in working age population.
DASH Airlines is considering the addition of a flight from Red Cloud to David City. The total cost of the flight would be $1,100, of which $800 are fixed costs already incurred. Expected revenues from the flight are $600. DASH should:
A. not add this flight because only flights that cover their full costs are profitable. B. not add this flight because it is not profitable at the margin. C. add this flight because marginal revenue exceeds marginal costs and total revenue exceeds total variable cost. D. not add this flight because total costs exceed total revenue.