A bank has total assets of $2,000,000 and capital of $150,000. The bank's leverage ratio is
A) 20%.
B) 15%.
C) 7.5%.
D) None of the above.
C
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If the price level in the U.S. is 120, the price level in South Africa is 140, and the nominal exchange rate is 7 South African rands per dollar, then the real exchange rate is
A) 6 South African goods per U.S. good. B) 8.4 South African goods per U.S. good. C) 9.8 South African goods per U.S. good. D) 1.4 South African goods per U.S. good.
If the money multiplier is approximated to be 4, then the reserve ratio must be:
A. 25 percent. B. 2.5 percent. C. 5 percent. D. 4 percent.
Archie has a savings account at a bank. If he earns 6 percent interest on his account and if there is deflation, then his purchasing power rises by more than 6 percent over the course of a year
a. True b. False Indicate whether the statement is true or false
Which of the following is NOT correct about the effects of a tariff on an imported product?
A) Tariffs benefit domestic producers by raising price and domestic output. B) Tariffs increase government revenue. C) Tariffs mean higher prices and less consumption for consumers of the product. D) Tariffs increase the efficiency of how resources are allocated.