Often Eurodollar deposits earn higher returns than U.S. bank deposits for all of the following reasons except:
A. the bank does not have to pay deposit insurance premiums on these deposits.
B. Eurodollar deposits are not subject to U.S. reserve requirements.
C. taxes on the profits on banks outside the U.S. may be lower on banks inside the U.S.
D. regulatory compliance may be more costly for a foreign bank than a U.S. bank.
Answer: D
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A perfectly competitive market arises when
A) the market demand is small relative to the output of a firm. B) there are many buyers but few sellers. C) the market demand is very large relative to the output of one seller. D) a firm has control over a unique resource. E) each of the many firms produces a slightly different product.
If we depict a simultaneous move, complete information game in a game tree, each player only has one information set no matter how many players there are in the game.
Answer the following statement true (T) or false (F)
Which of the following is true of exchange?
a. The value of a good is determined by the cost of the resources required to produce the good. b. Exchange makes it possible for trading partners to produce more goods through division of labor and adoption of mass production methods. c. Nothing new is created by exchange; if one party to an exchange gains, the other must lose an equal amount. d. Both a and b are true.
For the past half century, the Federal Reserve has expressed policy in terms of a target value for:
A. open market operations. B. the federal funds rate. C. the Federal Reserve discount rate. D. bank reserves.