A depositor places $5,000 in cash in a commercial bank, and the reserve ratio is 20 percent; the bank sends the $5,000 to the Federal Reserve Bank. As a result, the reserves and excess reserves of the bank have been increased, respectively, by:
A. $5,000 and $1,000
B. $5,000 and $4,000
C. $5,000 and $5,000
D. $4,000 and $4,000
B. $5,000 and $4,000
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If the Herfindahl index is the same in two industries, we can conclude that
a. the number of firms in each industry is the same b. there must not be the same number of firms in the two industries c. the sum of the squared market shares of all firms is the same in the two industries d. there must be an identical distribution of market share among firms in the two industries e. there must be a different distribution of market share among firms in the two industries
Which of the following is not considered a resident when calculating the balance of payments?
a. governments b. capital equipment c. organizations d. firms e. people
Of the stimulus package proposed by the Bush Administration in 2008,
A. the tax rebates were adopted while, the extension of temporary tax cuts was rejected. B. none of the proposed components of the package were actually implemented. C. all of the proposed components of the package were quickly implemented. D. the tax rebates were rejected while, the extension of temporary tax cuts was adopted.
An example of a renewable resource would be:
A. a river. B. natural gas. C. coal. D. All of these are examples of renewable resources.