A bank with a leverage ratio of 9 to 1 has
A) $9 in assets for every $1 in liabilities.
B) $9 in assets for every $1 in capital.
C) $1 in assets for every $9 in capital.
D) $1 in assets for every $9 in liabilities.
B
You might also like to view...
If the aggregate price level ________, but nominal wages stay fixed, labor demand ________
A) falls; remains unchanged B) rises; falls C) rises; remains unchanged D) falls; falls
The name of the rate that equalizes the prices of internationally traded goods between countries is called the
a. international interest rate. b. arbitrage rate. c. purchasing power parity rate. d. foreign exchange rate.
Full employment occurs only when the unemployment rate is 0%
a. True b. False
Producing where P = MC does not yield an optimal distribution of resources when externalities are present because
a. neither price nor marginal cost reflect the social costs or social benefits of production and consumption; that is, the costs and benefits to society b. while price still accurately measures benefits, marginal cost no longer measures the cost of resources to society c. while marginal cost accurately measures cost, price no longer measures the true social value of the goods produced d. output would always be higher than optimal e. output would always be lower than optimal