The desired reserve ratio is 10 percent. Fly By Night Bank has deposits of $250,000 and reserves of $25,000. What is the amount of its excess reserves?
What will be an ideal response?
The bank has no excess reserves. It wants to have ($250,000 ) × (0.10 ) = $25,000 as reserves. Its actual reserves equal $25,000. Therefore its excess reserves equal $25,000 - $25,000, or $0.
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Checks are NOT money because they
A) are issued by banks, not by the government. B) are merely instructions to transfer money. C) have value in exchange but little intrinsic value. D) are not backed by either gold or silver.
Unlike the situation for a firm in perfect competition, positive economic profit exists for firms in monopolistic competition for both the short run and in the long run.
Answer the following statement true (T) or false (F)
Joanne left her last? job, in which she was earning? $50,000, in order to form her own consulting business. Her revenues for the first year of consulting were? $210,000. During that? year, she hired two assistants for? $25,000 each and spent? $25,000 on office equipment. In? addition, she incurred? $75,000 in miscellaneous expenses. Her accounting profit that first year was
A) $10,000. B) $60,000. C) $210,000. D) $50,000.
It is spring, and several graduates of State U are seeking employment. State U graduates have evenly distributed GPAs, from 2.0 to 4.0, with an average GPA of 3.0. The largest employer in town, Acme Dynamite, is interviewing candidates, hoping to hire a few hard workers. While Acme does not require students to submit a transcript with their applications, the hiring officer believes that high GPAs signal a willingness to work hard. Acme has received applications from 10 graduates of State U. Five included transcripts, all of which indicated GPAs of 3.0 or better. Acme will most likely infer that the five graduates who did not include transcripts:
A. did not carefully read the application instructions. B. had GPAs of less than 3.0. C. had GPAs evenly distributed between 2.0 and 4.0. D. had GPAs of more than 3.0.