The banking system in the U.S. is based on:
A) 100 percent reserve banking.
B) fractional reserve banking.
C) 0 percent reserve banking.
D) none of the above.
B
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A payoff matrix shows:
A. the payoff to being a perfectly competitive firm. B. the demand curve facing a firm when there are only two firms. C. the payoffs for each possible combination of strategies. D. the payoff to being a monopolist.
Changing which of the following is a Federal Reserve monetary policy tool?
A) required reserve ratios B) desired reserve ratios C) excess reserve ratios. D) gold and foreign reserve ratios
The figure above provides information about Light-U-Up Utilities, which is a natural monopoly that provides electricity. If Light-U-Up is regulated, what is its economic profit if it must follow a marginal cost pricing rule?
A) -$40 B) -$20 C) $0 D) $30
In most cases, higher interest rates cause the velocity of M1 to
A) turn negative. B) move erratically. C) increase. D) decline.