In commercial banking operations, there is a trade-off between liquidity and profitability
a. True
b. False
Indicate whether the statement is true or false
True
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When the Federal Reserve increases the federal funds rate, bank loans ________, the supply of loanable funds ________, and the real interest rate ________
A) increase; increases; falls B) decrease; decreases; rises C) increase; increases; rises D) do not change; decreases; rises E) decrease; does not change; rises
The LM curve will shift to the right when government expenditures increase
Indicate whether the statement is true or false
Which president failed to renew the charter of the Second Bank of the United States?
A) George Washington B) Andrew Jackson C) Franklin Roosevelt D) Lyndon Johnson
If quantity demanded for rice falls by 4% when price increases 8%, we know that the absolute value of the own-price elasticity of rice is: a. 2.5
b. 0.5. c. 2. d. 0.40.