A bank has $200 million in assets and $150 million in liabilities. The banks net worth is _____________ million and its leverage ratio is __________________
A) $350; 0.56 to 1
B) $175; 1.14 to 1
C) $50; 4 to 1
D) $25; 8 to 1
C
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If the tax base is narrowed through an increase in exemptions, ______ in order to raise the same level of revenue
a. tax rates must be lowered b. tax rates must be raised c. tax expenditures must be increased d. nothing must happen
Which of the following statements is true about Say's law?
a. It states that supply creates its own demand. b. It states that demand creates its own supply. c. It states that total output will always exceed total spending. d. It states that consumption spending is the most volatile component of aggregate expenditures. e. It is a major proposition of the Keynesian model.
Goods used to produce other goods are known as
a. transitional goods b. durable goods c. nondurable goods d. services e. intermediate goods
Which of the following happened as a result of the global financial crisis caused when several types of unregulated financial assets failed late in 2007?
a. Housing prices ballooned to unprecedented levels. b. The Great Depression began. c. Certain financial institutions had to be taken over by the government. d. The Dodd-Frank Act was repealed.