Banks earn profits by selling ________ with attractive combinations of liquidity, risk, and return, and using the proceeds to buy ________ with a different set of characteristics

A) loans; deposits
B) securities; deposits
C) liabilities; assets
D) assets; liabilities


C

Economics

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Other things constant, an increase in resource prices will do which of the following?

What will be an ideal response?

Economics

Which formula below best expresses the real interest rate, (r)?

A. i = r - ?e B. r = i - ?e C. r = i + ?e D. ?e = i + r 

Economics

If a product's price increases, then its:

A. MP will increase. B. MFC will increase. C. MRP will increase. D. MP will decrease.

Economics

A car leasing company that expands its size by buying its competitors may run the risk of increasing production cost per unit due to:

A. diseconomies of scale. B. economies of scale. C. diminishing returns. D. greater use of large-volume purchases.

Economics