Answer the following statements true (T) or false (F)
1) Excess reserves are the amount by which required reserves exceed actual reserves.
2) Actual reserves equal required reserves plus excess reserves.
3) Commercial bank reserves are an asset to commercial banks but a liability to the Federal
Reserve Bank holding them.
4) Balance sheets always balance because reserves must always equal liabilities plus net worth.
1) F
2) T
3) T
4) F
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Outputs in the production process are
A. money. B. resources. C. goods and services of value to households. D. pollution.
Which of the following decisions are complicated by the value of money changing over time?
A. Buying a $100 concert ticket B. Buying a $100 blender C. Buying a $100 sweater D. Buying a $100 stock
Assuming well-defined indifference curves, when marginal utility is zero, total utility is at a maximum.
Answer the following statement true (T) or false (F)
In the above figure, suppose the economy is at point a. If there is an increase in real GDP, there is a movement to point such as
A) b. B) c. C) d. D) e.