Banks have attempted to maintain adequate profit levels by
A) making fewer riskier loans, such as commercial real estate loans.
B) pursuing new off-balance-sheet activities.
C) increasing reserve deposits at the Fed.
D) decreasing capital accounts.
B
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Refer to Figure 5-3. With insurance and a third-party payer system, what price do doctors receive for medical services?
A) $40 B) $55 C) $65 D) > $65
If a firm makes zero economic profit, then the firm
A) has no incentive to stay in the industry. B) is better of exiting the industry. C) is indifferent between staying and exiting the industry. D) will shut down.
If Sabrina exchanges dollars for Japanese yen, she
a. causes the balance of payments to become unbalanced, in the short run b. engages in arbitrage c. supplies yen on the foreign exchange market d. supplies dollars on the foreign exchange market e. first demands dollars then uses them to buy Japanese goods which can be converted into yen
Suppose the Fed raises the federal funds rate. Describe the ripple effects of this monetary policy. Other short-term interest rates and the exchange rate ________. The quantity of money and supply of loanable funds ________.
Fill in the blank(s) with the appropriate word(s).