In addition to being subject to the Fed's reserve requirements, the banks are also required to maintain a capital requirement, which is
A) the ratio of its deposits to its reserves.
B) the ratio of its loans to its reserves.
C) the ratio of its total assets to its total liabilities.
D) the ratio of its equity to its total assets.
D
You might also like to view...
A car dealership union negotiates a contract that dramatically increases all salesmen salaries. If one of the salesman is thinking of changing careers to be a hardware salesman, his opportunity cost
a. would not be affected b. would increase if he continued to be a car salesman c. of becoming a hardware salesman would increase d. none of the above
When price is constant, the average revenue curve is a(n)
a. upward-sloping straight line b. downward-sloping straight line c. horizontal line d. vertical line e. point on the total revenue curve
Suppose Bart's MRS for sodas with chips is 6 bags of chips per soda. Also assume that Lisa's MRS for sodas with chips is 8 bags of chips per soda. Assuming that these rates of substitution don't depend on the amounts consumed, which of the following trades would make Bart and Lisa better off?
A. Bart gives Lisa 9 bags of chips in exchange for a soda. B. Bart gives Lisa 7 bags of chips in exchange for a soda. C. Bart gives Lisa 6 bags of chips in exchange for a soda. D. None of these trades is mutually beneficial.
Assuming the demand for their products is inelastic, farmers (as a group) have an incentive to
A) increase the supply of what they sell. B) agree among themselves to decrease the supply of what they sell. C) spend at least 10 percent of their budgets to advertise their products. D) b and c E) a and c