In August 2007, Sun Trust Bank has $83 million in loans and $114 million in M1 deposits. If Sun Trust is holding $4 million in reserves, the bank's reserve ratio is
A) $31 million.
B) 4.8 percent
C) 3.5 percent.
D) 72.8 percent.
C
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Monetary policy actions are determined by the
A) Federal Open Market Committee. B) New York Federal Reserve Bank. C) President of the United States. D) U.S. Congress.
Using the data in the graph above, calculate the firm's total profit.
Using the above table, the following is the output of a two-product economy. The price index in this economy in Year 2, assuming Year 1 is the base year, is
A. 113.0. B. 107.1. C. 106.7. D. 88.5.
Cassie's Quilts alters, reconstructs, and restores heirloom quilts. Cassie has just spent $800 purchasing, cleaning, and reconstructing an antique quilt which she expects to sell for $1,500 once she is finished. After having spent $800, Cassie discovers
that she would need some special period fabric that would cost her $200 in material and time in order to complete the task. Alternatively, she can sell the quilt "as is" now for $900. What should she do? A) She should cut her losses and sell the quilt now. B) It does not matter what she does; she is going to take a loss on her project. C) She should purchase the period fabric, complete the task and then sell the quilt. D) She should not do any more work on the quilt because she has already spent too much time on it and has not been paid for that time.