Which of the following is a liability for the central bank?
A) currency
B) bonds
C) savings accounts
D) loans
E) checkable deposits
A
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If many banks fail, this is likely to cause a/an
a. increase in the currency-to-deposit ratio. b. increase in the reserves-to-deposit ratio. c. a fall in the currency-to-deposit and reserves-to-deposit ratios. d. both a and b. e. none of the above.
Which of the following would lead to a rightward shift in the demand curve for golf balls?
a. An increase in the price of golf clubs b. A decrease in the popularity of golf c. An increase in the number of golfers d. A decrease in the price of golf balls e. An increase in the golf club membership fee
A recent study showed that an increase in the price of gasoline promoted carpooling among office commuters. If gasoline is an important component in the fixed basket of goods used to calculate the Consumer Price Index, it will fail to reflect true changes in the cost of living of an average consumer because of the: a. quality bias
b. substitution bias. c. new good bias. d. quantity bias.
If a firm refuses to hire any minorities due to a personal prejudice, its profits will
a. not be affected. b. increase slightly. c. increase markedly. d. decrease.