Suppose that we learn that hotels in Los Angeles generally operate with an average vacancy rate of 15 percent (in other words, 85 percent of the hotel rooms are filled with guests). Given this information about excess capacity, we would judge this market to be
A. an oligopoly.
B. a perfectly competitive market.
C. a monopolistically competitive market.
D. a monopoly.
Answer: C
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Through correspondent banking, large banks provide services to small banks, including
A) loan guarantees. B) foreign exchange transactions. C) issuing stock. D) debt reduction.
Money serves as a unit of account, which means:
a. it acts as an intermediary between the buyer and the seller. b. it will still hold its value. c. it is the ruler by which other values are measured. d. it must also be acceptable to make purchases today that will be paid in the future.
When you start saving even a small amount early in life and continue saving for a long time (e.g., until you retire), you can build up a large “nest egg” because of:
a. compound interest. b. simple interest. c. taking big risks. d. sacrificing all the good things earlier.
When the Fed buys bonds in the open market, it pursues an expansionary monetary policy
a. true b. false