The current worth of future income after it is discounted, to reflect the fact that future dollars are worth less than current dollars, is called
a. the net present value of the income.
b. arbitrage.
c. the inflationary premium.
d. the real interest rate.
A
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The FUN Bank has no excess reserves when a new deposit of $20,000 is made. The desired reserve ratio is 5 percent. After the deposit, but before making any loans, how much does The FUN Bank have in excess reserves?
A) $19,000 B) $20,000 C) $1,000 D) $9,000 E) $21,000
What is a repeated game? Hoe does this helps the players in a game?
In a market economy, which of the following will most likely cause a prolonged milk shortage?
a. an increase in the demand for milk b. an increase in the supply of milk c. imposition of a price floor above the equilibrium price of milk d. imposition of a price ceiling below the equilibrium price of milk
A competitive capital market is important to society because it directs resources toward projects that
A) can be completed quickly. B) are valued more highly than their cost. C) have an outcome that is known with certainty. D) reduce the value of the resources employed.