Prior to 1980, member banks left the Federal Reserve System due to A) the high cost of discount loans. B) the high cost of required reserves. C) a desire to avoid interest rate regulations. D) a desire to avoid credit controls. ANSWER B
Date: September 10th, 2020
High fuel prices and losses by smaller firms have resulted in a considerable amount of consolidation in the trucking industry, which now most closely resembles the oligopoly market structure. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
The M2 monetary aggregate contains everything that is in M1 plus other assets that are highly ________ (can be turned into cash quickly at very little cost). A) liquid B) stable C) consistent D) efficient ANSWER A
Date: September 10th, 2020
Economic profit is equal to the difference between: A) total revenue and the full opportunity cost of all the resources used in production. B) total revenue and implicit costs. C) accounting profit and explicit costs. D) implicit and explicit costs. ANSWER A
Date: September 10th, 2020
Distinguish between direct finance and indirect finance. Which of these is the most important source of funds for corporations in the United States? What will be an ideal response? ANSWER With direct finance, funds flow directly from the lender/saver to the borrower. With indirect finance, funds flow from the lender/saver to a financial intermediary […]
Date: September 10th, 2020
________ may antagonize customers and thus can be a very costly way of acquiring funds to meet an unexpected deposit outflow. A) Selling securities B) Selling loans C) Calling in loans D) Selling negotiable CDs ANSWER C
Date: September 10th, 2020
Which of the following is the best example of “depreciation”? A) An individual worker becoming tired at the end of an eight-hour work day. B) The notion that individuals obtain less utility from paying taxes than giving to charities. C) A truck used by a pizzeria to make deliveries is worth less at the end […]
Date: September 10th, 2020
In 2002 – 2003, some McDonalds’ franchise owners reported that profits were declining from selling the discounted items from the Dollar Menu. This suggests that: A) those items are price elastic. B) those items are price inelastic. C) those items are price unitary elastic. D) none of the above. ANSWER B
Date: September 10th, 2020
The quantity of money demanded is positively related to the interest rate. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Refer to Table 11.1. What is the value of gross private domestic investment? A) $1,500. B) $1,400. C) $1,600. D) $2,000. ANSWER B
Date: September 10th, 2020
