There are several government agencies in the United States that regularly check the balance sheets of banks. This is done to ensure that:
a. banks take on risky projects that will earn high returns.
b. banks have a positive net worth.
c. banks earn sufficient profits
d. banks lend to customers with poor credit ratings.
b
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How does the Fed increase the level of reserves in the banking system?
A) by lowering interest rates B) by buying bonds C) by raising interest rates D) by selling bonds
On January 1, 2015, United Delivery had trucks valued at $1.3 million. During 2015, United Delivery purchased new trucks valued at $500,000. If the value of the trucks on December 31, 2015 was $1
5 million, what is the amount of its net investment and its depreciation during 2015?
In the figure above, an increase in income would result in the budget line
A) making a parallel shift toward point a. B) making a parallel shift toward point c. C) becoming flatter. D) becoming steeper.
In calculating gross domestic product, the Bureau of Economic Analysis uses the sum of the market value of final goods and services produced. This means that the BEA
A) values goods at their market prices, multiplies them by the quantity produced, and then adds them up. B) values goods and services at their market prices, multiplies them by the quantity produced, and then adds them up. C) simply counts the total number of goods and services produced in the marketplace and then adds them up. D) simply counts the total number of goods produced in the market place and then adds them up.