A $100 deposit into my checking account at My Bank increases my checkable deposits by $100, and the bank’s ________ by $100. A) reserves B) loans C) capital D) securities ANSWER A
Date: September 10th, 2020
The monetary base is smaller than the money supply. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
The Chinese policy of one child per family provided McDonald’s the opportunity to actively market to: A) children. B) senior citizens. C) parents. D) none of the above. ANSWER A
Date: September 10th, 2020
Assume the market price is greater than average total cost at the perfectly competitive firm’s profit-maximizing level of output. In this case, the firm is earning positive economic profits, which act as an incentive for new firms to enter the market. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
The Federal Reserve Banks are ________ institutions since they are owned by the ________. A) quasi-public; private commercial banks in the district where the Reserve Bank is located B) public; private commercial banks in the district where the Reserve Bank is located C) quasi-public; Board of Governors D) public; Board of Governors ANSWER A
Date: September 10th, 2020
Commodities that last less than three years and may be consumed very quickly are called: A) durable goods B) nondurable goods C) services D) none of the above ANSWER B
Date: September 10th, 2020
A breakdown of financial markets can result in A) financial stability. B) rapid economic growth. C) political instability. D) stable prices. ANSWER C
Date: September 10th, 2020
Over the next three years, the expected path of 1-year interest rates is 4, 1, and 1 percent. The expectations theory of the term structure predicts that the current interest rate on 3-year bond is A) 1 percent. B) 2 percent. C) 3 percent. D) 4 percent. ANSWER B
Date: September 10th, 2020
In the short run, a perfectly competitive firm can earn positive, zero, or negative profit depending on the market price of the firm’s output. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Managers in firms with market power can: A) not influence price. B) develop strategies that involve both the demand and supply sides of the market. C) only focus on the demand side of the market. D) none of the above. ANSWER B
Date: September 10th, 2020
