If a bank has a net worth that is negative, what do you know about the relationship between the amounts the bank has in assets and liabilities?
What will be an ideal response?
If a bank had a negative net worth, it means the bank's capital is less than zero. This can only be the case if the bank's liabilities exceed its assets.
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Banking failures result when
(a) banks do not hold 100 percent of their customers' deposits in their vaults. (b) banks make loans. (c) bank withdrawals exceed their reserves. (d) all of the above occur.
If the national debt rises to the debt ceiling and there is currently a budget ________, the Congress and the President must agree to ________ the debt ceiling or else the federal government will have insufficient funds to pay its bills and will be forced to shut down
a. surplus, lower b. deficit, raise c. surplus, lower d. none of the above
A "war on drugs" is waged, and, as a result, a larger quantity of drugs flowing into the United States is seized and more drug traffickers are arrested. If demand for drugs is inelastic, one would expect the total expenditure on drugs to: a. decrease
b. increase. c. stay constant. d. There is not enough information available to make a determination.
When compared to perfect competition, in a monopsony
A. there is deadweight loss. B. there is no deadweight loss. C. consumer surplus decreases. D. the price is lower and the quantity is higher.