An open market purchase of securities by the central bank from banks usually will:
A. decrease the amount of deposits in the banking system.
B. decrease the banks' willingness and ability to make loans.
C. induce the banks to make more loans since their revenue will decrease if they do nothing.
D. increase the banks' revenue even if the bank does nothing with the reserves.
Answer: C
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What will be an ideal response?
The age-earning cycle shows an individual typically earning
A) a constant income (adjusted for inflation) over the entire working life of the worker. B) an income that cycles upward and downward as an individual ages. C) an income that increases with age, peaks, and then falls as retirement approaches. D) an income that declines until age 30-35 and then increases rapidly.
Which of the following topics is not a part of a typical scenario plan?
a. Expected changes in corporate governance practices. b. Expected changes in labor-management relations. c. Expected changes in government intervention and regulations. d. Expected changes in country infrastructure. e. Expected changes in budgets and capital budgeting projects.
"If the United States enters a war with Canada, U.S. export prices will go up." This statement is an example of
A) a positive statement. B) an irrational statement. C) a normative statement. D) a realistic statement.