If the economy may be likened to a biological organism, then the financial system may be thought of as the ________
A) brain
B) stomach
C) lungs
D) feet
A
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What reason do economists believe that megabanks are forming?
A) Megabanks enable economies of scale in information processing which allows them to better serve their customers. B) Megabanks create economies of scale which allow the banks to make riskier investment and increase profits. C) Megabanks can compensate for their economies of scale by diversifying into many countries. D) Megabanks allow investors more opportunities and have continued to grow by using their economies of scale to overwhelm their competition.
If a bank’s assets are $500 million and its liabilities are $380 million, then its net worth (bank capital) is ____________________. If the bank’s assets then rise by 6 percent at the same time that its liabilities rise by 5 percent, the percentage change in the bank’s net worth will be approximately _______________ percent.
A. $440 million; 10.2 B. $120 million; 1.2 C. $100 million; 11.2 D. $120 million; 9.2
Which of the following demonstrates why international trade is helpful to businesses?
a. Hakan went car shopping and test drove models from several international automakers. b. The app that Martin designed could be modified and sold in any market around the world. c. Deb’s Designs had to compete in the clothing market against less-expensive import brands. d. At the local big box store, Lin found deep discount prices on many essential household items.
U.S. tire production involves large social costs from air pollution. How will stronger U.S. environmental regulations requiring firms to reduce their air pollutants affect U.S. tire imports?
a. Stronger U.S. environmental regulations will cause increases in U.S. tire imports. b. Stronger U.S. environmental regulations will cause decreases in U.S. tire imports. c. Stronger U.S. environmental regulations will neither cause increases nor decreases in U.S. tire imports d. Stronger U.S. environmental regulations will cause decreases in U.S. tire imports but not reduce tire producers' emissions of air pollutants.