Suppose Acme County Bank and Trust has $1 million in total deposits and the required reserve ratio is 5%. How many dollars is Acme bank allowed to use to seek profits?
A) 0
B) $50,000
C) $500,000
D) $950,000
E) Trick question: banks aren't allowed to seek profit.
D
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The quantity of a good demanded tends to increase as its price falls because: a. a decrease in price shifts the demand curve to the right
b. a decrease in price shifts the demand curve to the left. c. a decrease in price shifts the supply curve to the right. d. a decrease in price leads consumers to substitute toward this now relatively cheaper product.
Which of the following programs would be opposed by philosopher John Rawls?
a. a negative income tax b. the Supplemental Security Income (SSI) program c. a tax plan creating a perfectly egalitarian income distribution d. Rawls would oppose all of the programs.
The optimal Pigouvian tax is equal to the marginal social:
a. benefit of pollution at the market-determined level of pollution. b. cost of pollution at the market-determined level of pollution. c. benefit when there is zero pollution. d. cost of pollution at the socially optimal quantity of pollution.
The major protection against sudden mass attempt to withdraw cash from banks is the:
A. Federal Reserve. B. Consumer Protection Act. C. deposit insurance provided by the FDIC. D. gold and silver backing the dollar.