Assets of the commercial banking system include:
A. reserves and deposits.
B. deposits.
C. loans and deposits.
D. reserves and loans.
Answer: D
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The governmental interference with the market exchange often reduces the total surplus
a. True b. False Indicate whether the statement is true or false
A consumer possesses five pounds of bananas and values their total utility at $2.14 . If one additional pound is acquired and marginal utility is 11 cents, total utility will
a. rise to $2.25. b. fall to $2.03. c. stay the same. d. fall to $2.11.
. People sometimes alter their preferences when a problem is posed or presented in different language. This is known as ______.
a. the endowment effect b. framing c. the gambler’s fallacy d. overconfidence
During a depression, the best strategy of the Federal Reserve is to
A. sell government bonds, to make low-risk, sound assets available for commercial banks to buy. B. sell government bonds, in order to reduce the size of the government's deficits. C. sell government bonds, in order to increase aggregate demand. D. buy government securities.