Small-denomination time deposits refer to certificates of deposit with a denomination of less than A) $1,000. B) $10,000. C) $100,000. D) $1,000,000. ANSWER C
Date: September 10th, 2020
If a good is price inelastic, a decrease in price will: A) decrease total revenue. B) increase total revenue. C) not affect income. D) none of the above. ANSWER A
Date: September 10th, 2020
If, after a deposit outflow, a bank needs an additional $3 million to meet its reserve requirements, the bank can A) reduce deposits by $3 million. B) increase loans by $3 million. C) sell $3 million of securities. D) repay its discount loans from the Fed. ANSWER C
Date: September 10th, 2020
With direct finance, funds are channeled through the financial market from the ________ directly to the ________. A) savers, spenders B) spenders, investors C) borrowers, savers D) investors, savers ANSWER A
Date: September 10th, 2020
Refer to Table 11.1. What is the value of personal consumption expenditures? A) $3,000. B) $1,000. C) $4,350. D) $2,350. ANSWER C
Date: September 10th, 2020
The payment of wages by a firm is an example of: A) an explicit cost of production. B) an implicit cost of production. C) an irreversible cost of production. D) a long-run cost of production. ANSWER A
Date: September 10th, 2020
The rising phase of a business cycle measured by an increase in real GDP is called: A) trough. B) expansion. C) recession. D) contraction. ANSWER B
Date: September 10th, 2020
The estimated price-cost margin of 11.9 percent in the market for broiler chickens in 1992 suggested that there was a high degree of competition in that industry. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
The primary monetary policy tool is reserve requirements. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
For much of 2001 and 2002, McDonalds faced a(n): A) decrease in demand. B) increase in demand. C) increase in profits. D) none of the above. ANSWER A
Date: September 10th, 2020
