Bank capital is equal to
A) the value of the capital originally invested in the bank by its owners.
B) the value of everything the bank owns.
C) the difference between the value of the bank's assets and the value of its liabilities.
D) the value of the buildings and other physical assets the bank owns.
C
You might also like to view...
Larry has a comparative advantage over his classmates in writing term papers if he:
A. always earns an A on his term papers. B. can write term papers faster than his classmates. C. has an absolute advantage in writing term papers. D. has a lower opportunity cost of writing term papers than his classmates.
The price elasticity of demand for an exhaustible natural resource tends to
A. fall over time because extraction costs rise over time. B. stay constant over time because the resource’s price rises at a constant rate. C. rise over time because the resource’s rising price stimulates conservation and the development of substitutes. D. rise over time because resource extraction tends to become more efficient over time.
Economies with sustained high inflation generally have
A) very low unemployment rates. B) very low GDP growth rates. C) high rates of business investment. D) independent central banks.
The absolute price elasticity of demand for a product that has many good substitutes is probably
A) less than 1. B) greater than 1. C) equal to 1. D) infinity.