Bank A has checkable deposits of $800,000 and total reserves of $200,000. If the required reserve ratio is 0.11, the bank has required reserves of
a. $600,000.
b. $88,000.
c. $112,000.
d. $22,000.
Answer: b. $88,000.
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The longer you have to wait to receive a payment
A) the greater value it will have to you. B) the lower the interest rate you will charge on the payment. C) the less value it will have to you. D) the more you are willing to discount the payment.
In some states, it is against the law to sell alcohol on Sundays. This law was created to honor the Christian religious belief that Sunday is a special day of rest. This is an example of culture impacting the __________ of goods.
A. production B. distribution C. pricing D. packaging
Suppose a firm is employing labour (L) and capital (K) such that MPK/MPL = PK/PL. If the price of labour rises, the cost -minimizing firm should:
a) employ more capital and less labour because MPK/MPL < PK/PL. b) do nothing. c) employ more labour and less capital because MPK/MPL > PK/PL. d) employ more capital and less labour because MPK/MPL > PK/PL. e) employ more labour and less capital because MPK/MPL < PK/PL.
Exhibit 6A-2 Consumer Equilibrium
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Given the budget lines and indifference curves shown in Exhibit 6A-2, point B yields:
A. more total utility than point F. B. more total utility than points A and C. C. less total utility than point F. D. equal total utility to point F.