Which of the following statements most accurately describes the task of bank asset management?
A) Banks seek the highest returns possible subject to minimizing risk and making adequate provisions for liquidity.
B) Banks seek to have the highest liquidity possible subject to earning a positive rate of return on their operations.
C) Banks seek to prevent bank failure at all cost; since a failed bank earns no profit, liquidity needs supersede the desire for profits.
D) Banks seek to acquire funds in the least costly way.
A
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When compared with China, the growth of clothing exports originating in Bangladesh is the result of
A) the comparative advantage that Bangladesh has in the production of clothing for export. B) the absolute advantage that China has in the production of clothing for export. C) the absolute advantage that Bangladesh has in the production of clothing for export. D) the comparative and absolute advantage that China has in the production of clothing for export. E) the comparative and absolute advantage that Bangladesh has in the production of clothing for export.
A profit-maximizing monopolist charges a price of $12 . The intersection of the marginal revenue and marginal cost curves occurs where output is 10 units and marginal cost is $6 . Average total cost for 10 units of output is $5 . What is the monopolist's profit?
a. $60 b. $70 c. $100 d. $120
Risk is:
A. why the changing value of money is such a challenge. B. to always be avoided, at any cost. C. when the costs or benefits of an event or choice are uncertain. D. None of these statements is true.
A production possibilities frontier is a line or curve that:
A. shows all the possible combinations of outputs that can be produced using all available resources. B. shows what can be produced when all available resources are efficiently used. C. shows the best combinations of outputs that can be produced using all available resources. D. explains why societies make the choices they do.