Suppose a bank has $200,000 in deposits, a required reserve ratio of 10 percent, and bank reserves of $45,000. Then this bank can make new loans in the amount of
A. $25,000.
B. $10,000.
C. $2,500.
D. $20,000.
Answer: A
You might also like to view...
Leontief found that
A) U.S. exports are capital intensive relative to U.S. imports. B) U.S. imports are labor intensive relative to U.S. exports. C) U.S. exports are neither labor nor capital intensive. D) None of the above.
Using the above figure, the short-run break-even price for the perfectly competitive firm will be
A) P1. B) P2. C) P3. D) P4.
Predatory pricing: a. occurs when a firm increases price in order to exploit inelastic demand by consumers
b. occurs when a firm prices below average variable cost in order to drive competitors out of the market. c. is difficult to distinguish from vigorous competition in practice. d. is characterized by both (b) and (c).
The Coase theorem states that if pollution permits are tradable, the outcome will be optimal, _____
a. regardless of who initially gets the permits b. only if the property rights are assigned to the victims of pollution c. only if property rights are determined by the government d. only if the property rights are assigned to the party with the least-cost alternative