The predominant liability item for most banks is:
a. deposits
b. bonds.
c. loans.
d. federal cash reserves.
a
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If a university charged a lower price for tuition during summer school than during the regular session, in search of added total revenue,
a. administrators likely believe that demand is more elastic during summer school than during the regular session. b. administrators likely believe that demand is less elastic during summer school than during the regular session. c. it indicates nothing about likely differences in the elasticity of demand during summer school than during the regular session. d. administrators likely believe that demand is both lower and less elastic during summer school than during the regular session.
Suppose that an economy produces food and clothing, and a technological innovation occurs that enhances the productivity of resources used in producing both goods. Which of the following would be consistent with this situation?
a. There is a parallel outward shift of the PPF. b. The PPF rotates outward along the food axis, and remains fixed at the point of maximum clothing production. c. The PPF rotates outward along the clothing axis, and remains fixed at the point of maximum food production. d. There is a parallel inward shift of the PPF.
Which of the following is true of regulation?
A) Mortgage lending and banking have historically been unregulated and therefore regulation in these sectors is unpopular. B) Regulatory agencies often ignore the secondary effects of their actions and fail to foresee future problems. C) Policy-makers are hesitant to call for new regulations even when it is clear they would help avert future crises. D) Past regulations have been effective at averting crises, but they are unpopular because they reduce the profitability of the regulated industry.
The equilibrium interest rate:
A. allocates the available supply of loanable funds to investment projects that have high enough rates of return to justify the borrowing. B. rises when the supply of loanable funds increases. C. is the price paid for the use of any resource. D. affects the size of total output but not the composition of that output.