In managing its liabilities to deal with liquidity problems, banks trade off
A) credit risk against interest rate risk.
B) adverse selection against moral hazard.
C) the need for available funds to meet deposit outflows against the desire for greater profit.
D) present tax liabilities against future tax liabilities.
C
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Since a monopolist faces a downward sloping demand curve,
a. the monopolist is able to sell all that it wants at whatever price the monopolist chooses. b. it is necessary for the monopolist to lower the price to sell additional units of the good. c. the monopolist sells only a fraction of the total sales of the good in the market d. the monopolist must always make an economic profit.
The value of a country's currency declines when it implements policies that restrict trade. The primary factor affecting the change in value of the currency in this situation is
A. cultural differences. B. civil unrest. C. demographics. D. isolationism.
Refer to the above data. If the price of X decreases to $2, then the utility-maximizing combination of the two products is:
A) 2 of X and 5 of Y. B) 4 of X and 6 of Y. C) 6 of X and 3 of Y. D) 4 of X and 5 of Y.
The short-run elasticity measures the immediate percentage change in a dependent variable given a 1% increase in the independent variables.?
Answer the following statement true (T) or false (F)