Everything else equal, if the ratio of bank assets to bank capital decreases, the bank's return on equity should:
A. cannot be determined from the information provided.
B. remain constant.
C. increase.
D. decrease.
Answer: D
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Central banks can increase the money supply by:
a. Increasing the discount rate. b. Buying government securities. c. Selling foreign exchange. d. All of the above. e. None of the above.
Suppose an acre of land yields 100 bushels of corn and that one bushel of corn provides enough seed for one-quarter of an acre of land. The opportunity cost of consuming another 100 bushels of corn today is
A) 100 bushels of corn next year. B) 25 bushels of corn next year. C) 10 bushels of corn next year. D) 2.5 bushels of corn next year.
If the CPI was 160 in 2008 and 40 in 2005, the cost of living was:
What will be an ideal response?
The collapse of AT&T's natural monopoly in long-distance telephone service was caused by
A. The takeover of the telephone industry by the U.S. government. B. Inadequate profits. C. Government regulation because of illegal collusion between ATamp;T and foreign competitors. D. Satellite technology that made it easier and less expensive for new companies to provide long-distance service.