A bank's required reserves can be calculated by
A. multiplying its checkable-deposit liabilities by the reserve ratio.
B. multiplying its checkable-deposit liabilities by its excess reserves.
C. dividing its required reserves by its excess reserves.
D. dividing its excess reserves by its required reserves.
Answer: A
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The government component (G) of total output includes goods and services purchased by
a. the federal government plus transfer payments. b. all government institutions plus transfer payments. c. all government institutions. d. all government institutions plus tax revenues.
In order for product differentiation to take place
A. there must be physical differences among the products. B. there cannot physical differences among the products. C. there may or may not be physical differences among the products.
The "invisible hand" concept refers to the:
A. Guiding function of prices in a market system B. Implicit influence that the government has on the actions of firms C. Regulatory structure that markets must operate in D. Underlying money flows that promote the trading of goods and services
A country undertakes a devaluation in order to:
A. increase its net exports. B. decrease its net exports. C. raise the value at which its currency is pegged. D. move to a flexible exchange rate system.