Suppose Bank X is holding total cash reserves of $32,000 on deposits of $90,000 . If the reserve requirement is 15 percent, then the excess reserves held by this bank is:
a. $27,200.
b. $58,000.
c. $4,800.
d. $13,200.
e. $18,500.
e
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Using the five criteria in the book, explain how U.S. currency is suitable to use as a medium of exchange
What will be an ideal response?
If consumption of a good creates positive externalities, then
a. the market will under produce it b. the market will over produce it c. the market must be perfectly competitive d. the market must be constrained by barriers to entry e. the market will produce the most efficient quantity
It would always be a mistake to view
a. a streetlight as a common resource. b. a nontoll road as a public good. c. the environment as a common resource. d. a lighthouse as a public good.
Which statement is true?
A. The firm is making a profit in the short run.
B. The firm is making a profit in the long run.
C. The firm is making a loss in the short run.
D. The firm is making a loss in the long run.