Assuming a reserve ratio of 10 percent, if a bank sells $200,000 in securities how much can the bank loan out?
A. $180,000
B. $20,000
C. $100,000
D. $2,000,000
Answer: A
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In the national income accounts, investment includes all of the following EXCEPT:
a. stock market purchases. b. inventories. c. purchases of equipment. d. new home sales.
Which of the following is reflected in the gross domestic product (GDP)?
a. The value of leisure time b. The value of illegal goods and services c. The value of final goods produced by firms d. The cost of depletion of natural resources e. The value of house maintenance performed by homeowners
The owner of Chez Zee needs to hire a new head chef and has posted an advertisement on various online job boards. The restaurant owner wants to reduce the amount of imperfect information he receives from job applicants. Which of the following would address this concern?
a. Requiring a resume and recommendations b. Requiring a detailed job and personal history c. Stipulating a trial period as a hiring condition d. Offering the job with a renewable contract
The above figure shows the market for steel ingots. If the market is competitive, and the government institutes a $100 specific tax on steel, then
A) less than the socially optimal quantity of steel is produced. B) the socially optimal quantity of steel of 50 units is produced. C) the socially optimal quantity of steel of 100 units is produced. D) more than the socially optimal quantity of steel is produced.