Suppose Ariana deposits $75,000 in her bank. If the reserve ratio is 20 percent, this will lead to a maximum increase of ________ in checking account balances throughout all banks.
A. $15,000
B. $375,000
C. $750,000
D. $1,500,000
Answer: B
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If 10 firms share the sales of the market equally, the four-firm concentration ratio is ________ percent
A) 100 B) 40 C) 10 D) 5
Gooey Flakes is the only ready-to-eat cereal that has chocolate syrup injected into each flake. The machine that injects the syrup into the flakes can do nothing else. Which of the following is true?
a. All of the machine's earnings are economic rent. b. All of the machine's earnings are opportunity cost. c. The supply curve for this machine is horizontal. d. The demand curve for this machine is horizontal. e. The demand curve for this machine is vertical.
Assume that the reserve requirement is 10 percent. If a bank has total deposits of $80 million, then the required reserves must equal:
a. $80 million. b. $12 million. c. $50 million. d. $8 million. e. $10 million.
You are in the line to go see a movie when you suddenly realized you have lost your ticket. It would cost you $10 to buy a new ticket. Now you are deciding whether to buy a new ticket or not. Assuming you have enough money to buy a new ticket, you would always buy the new ticket as long as:
A. your reservation price for it is equal or larger than $20. B. your reservation price for it is equal or larger than $10. C. the new ticket is less expensive than the first. D. the new ticket is free.