A commercial bank is a financial institution that:
A. determines the value of currency.
B. prints and distributes currency.
C. holds the savings of individuals for a fee until they need them.
D. borrows from and lends to individuals and businesses.
Answer: D
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If foreigners spend more on U.S.-made goods and services than we spend on theirs
A) foreigners must borrow from the United States or sell U.S. assets to make up the difference. B) all U.S. national saving remains in the United States. C) we must borrow from foreigners because of low imports. D) funds flow in from abroad to help finance U.S. investment.
As the exchange rate ________, the quantity of dollars ________ in the foreign exchange market ________
A) rises; supplied; increases B) falls; supplied; increases C) rises; demanded; increases D) falls; demanded; decreases
Perfect competition and monopolistic competition are similar in that both market structures include
A) price-taking behavior by firms. B) a homogeneous product. C) no barriers to entry. D) very few firms.
During periods of high inflation, people want to hold as much money as possible
a. True b. False Indicate whether the statement is true or false