Depository institutions
What will be an ideal response?
offer transaction, or checking, accounts to the public, and may maintain accounts of their own at their local Federal Reserve Banks. Depository institutions are required to meet reserve requirements--that is, to keep a certain amount of cash on hand or in an account at a Reserve Bank based on the total balances in the checking accounts they hold.
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If India decides to enact environmental laws to reduce air pollution, what would be the effect on GDP?
A) GDP would decrease if the pollution controls reduce productivity by more than the cost of the controls. B) GDP would increase as the environmental costs of pollution were not included in the calculation of GDP. C) GDP would increase as the citizens of India were made happier as the air pollution was reduced. D) GDP would increase reflecting the fact that the air would be cleaner.
Refer to the figure above. If Lithasia does not engage in international trade, what is the domestic production of pens?
A) 0 units B) 6 units C) 12 units D) 16 units
All of the following are reasons why China is unlikely to maintain high enough rates of productivity growth to catch-up with the standard of living in the United States except
A) because of the low birth rate in China, the labor force will soon decline. B) much of China's growth is likely due to the transition from a centrally-planned economy to a market economy. C) the Chinese migration of rural workers to more productive urban jobs. D) the United States invests more in research and development. than does China.
A new country has been established on the moon and created a currency called cheesybits. Which of the following does not involve a foreign exchange transaction?
A. Luna lives on the moon and wants to travel to visit relatives in Japan. B. Moonrock corporation needs new mining equipment that it buys from a manufacturer in Russia. C. Moonbeam Incorporated, the largest company on the moon, sells building products for houses on the moon. D. Han is visiting the moon and wants to eat at his favorite restaurant, the Moonglow Bar and Grill.