The inter-bank loans that appear on banks' balance sheets represent what proportion of bank capital?
A. About one-third
B. Less than one percent
C. Almost three-fourths
D. Nearly ten Less than 4 percent
Answer: D
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Suppose our firm produces chartered business flights with capital (planes) and labor (pilots) in fixed proportion (i.e., one pilot for each plane)
If the wage rate paid to the pilots increases relative to the rental rate of capital for the airplanes, then: A) the optimal capital-labor ratio should increase. B) the optimal capital-labor ratio should decrease. C) the optimal capital-labor ratio remains the same. D) We do not have enough information to answer this question.
Refer to the above figure. Profits will equal zero
A) when the price equals $1. B) when the price equals $2. C) when the price equals $4. D) at prices between $1 and $2.
The primary focus of U.S. farm policy has been
A. Price supports. B. Low-interest loans. C. Tax credits for mechanical equipment. D. Subsidies.
Which of the following tactics is most associated with the demand-enhancement union model?
A. Reducing the price of inputs that are substitutes for union workers. B. Lobbying for increases in public expenditures on the product it is producing. C. Restricting the number of workers allowed to work in the industry. D. Increasing the price of products that are complements for the one it is producing.