The deposit-creation process can continue as long as
a. banks have required reserves
b. banks have excess reserves
c. the Fed sells bonds
d. banks sell bonds to the public
e. the required reserve ratio does not change
B
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Accounting profit minus implicit costs equals:
A. explicit costs. B. economic profit. C. fixed costs. D. total revenues.
When Bob's willingness to pay for a cup of coffee is $1, and the price of a cup of coffee is $1:
A. Bob is indifferent about purchasing the coffee. B. Bob will get no surplus by purchasing the coffee. C. Bob will get the same surplus whether he purchases the coffee or not. D. All of these are true.
Which of the following is not a function of the Federal Reserve System?
a. To control the money supply. b. To print new money. c. To supervise and regulate banks. d. To aid in the check clearing process. e. To maintain and circulate currency.
Refer to the accompanying figure. At a price of $2, the total expenditure on lattes each hour equals:
A. $60. B. $40. C. $80. D. $30.