In 2012, all of fast-food chains expanded their hours of operation, with nearly 40% of all McDonald’s restaurants being open 24 hours per day. This strategy was aimed at increasing sales because: A) it was estimated that nearly one-fifth of all employed Americans worked primarily in the evening contributing to the demand for fast-food in […]
Which of the following is included in both M1 and M2? A) currency B) savings deposits C) small-denomination time deposits D) money market deposit accounts ANSWER A
The Resolution Trust Corporation insures bank deposits. Indicate whether the statement is true or false ANSWER FALSE
A deposit outflow results in equal reductions in A) loans and reserves. B) assets and liabilities. C) reserves and capital. D) assets and capital. ANSWER B
Commodities that typically last three years or more are called: A) durable goods. B) nondurable goods. C) services. D) none of the above. ANSWER A
Which of the following is NOT included in the M1 measure of money but is included in the M2 measure of money? A) currency B) traveler’s checks C) demand deposits D) small-denomination time deposits ANSWER D
Managers can increase firm profits by: A) increasing revenue only. B) decreasing costs only. C) increasing revenue and decreasing costs. D) none of the above. ANSWER C
Which of the following is an entity of the Federal Reserve System? A) the U.S. Treasury Secretary B) the FOMC C) the Comptroller of the Currency D) the FDIC ANSWER B
With a 10% reserve requirement ratio, a $100 deposit into New Bank means that the maximum amount New Bank could lend is A) $90. B) $100. C) $10. D) $110. ANSWER A
Which of the following is true of the typical relationship between marginal product (MP) and average product (AP)? A) If MP is greater than AP, then AP is falling. B) The AP curve intersects the MP curve at minimum MP. C) The MP curve intersects the AP curve at maximum AP. D) If MP is […]
