List the various categories into which a bank's liabilities are divided?
What will be an ideal response?
A bank's liabilities are divided into the following.
a. Demand deposits: These are funds loaned to the bank by depositors.
b. Short-term borrowing: This is comprised of short-term loans that a bank has obtained from other financial institutions
c. Long-term debt: This is defined as debt that is to be repaid in a year or more.
d. Stockholders' equity: This is defined as the difference between a bank's total assets and liabilities.
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Which of the following policies improves prospects for more rapid economic growth?
A) policies to increase government expenditure B) limitations on international trade C) policies to increase the educational attainment of the labor force D) encouragement of political instability
_____ shows the nominal exchange rate at which a given basket of goods and services in a country would cost the same as in another country
a. Consumer price index b. Purchasing Power Parity c. Wholesale price index d. Real balance effect
In order to maintain a balanced budget every year, during a recession the government would have to
A. Decrease the money supply. B. Increase spending or decrease taxes or both. C. Decrease spending or increase taxes or both. D. Increase the money supply.
Classical economists wrote from the 1770s to the ________.
A. 1930s B. 1960s C. 1890s D. 1850s