In addition to interest on loans, another major source of funds for banks is
A. interest-free loans from the Federal Reserve to banks.
B. subsidies from the U.S. Treasury.
C. inflation.
D. the fees charged to depositors.
Answer: D
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The market structure that is most different from the model of perfect competition is:
A) monopolistic competition. B) monopsony C) oligopoly. D) monopoly.
Evidence of discrimination in labor markets
a. applies only to race and gender. b. is conclusively identified by large differences in average wages rates between men and women. c. is difficult to verify by reference to differences in average wage rates. d. is more easily identified on the basis of race than gender.
Diversification puts "the law of large numbers" to work for you because it
A) eliminates all asset risk. B) reduces tax liabilities on earned dividends. C) increases the chance that a single bond will substantially improve the overall performance of your portfolio. D) lowers the chance that a reduction in the market value of a single asset like a corporate stock will significantly reduce your overall portfolio return.
Which of the following best explains why so many persons with incomes below the poverty threshold income level work very little or not at all?
a. They confront high implicit marginal tax rates. b. They do not enjoy income as much as other people. c. There are no jobs for low-skill workers. d. They often face very low explicit marginal tax rates.