What is one reason why stocks are not considered money?
a. They cannot be readily exchanged for legal tender.
b. Their value fluctuates, and there is no guarantee of being able to obtain their original value.
c. They have exceptionally high liquidity, so determining their value is difficult.
d. Brokers pool them with the money of other depositors.
b. Their value fluctuates, and there is no guarantee of being able to obtain their original value.
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Most securities traded in the United States are
a. secondhand securities bought by individuals b. secondhand securities bought by institutional investors c. new securities bought by institutional investors d. new securities bought by banks and insurance companies e. new securities bought by individuals
When banks hold more reserves than are required, such reserves are called
A) total reserves. B) required reserves. C) excess reserves. D) loan reserves.
The short-run aggregate supply curve is most likely to shift down (to the right) if:
A. input prices fall. B. productivity falls. C. sales taxes increase. D. wages rise.
Which of the following statements concerning pollution is correct?
A) Economic efficiency requires that pollution be completely eliminated. B) Economic efficiency dictates that the optimal amount of pollution arises at the point at which price equals private marginal cost. C) Pollution should be reduced to the point at which the marginal benefit from further reduction equals the marginal cost of further reduction. D) Pollution should be reduced to the extent necessary to return production to the production possibilities frontier.