Which of the following are bank assets? A) the building owned by the bank B) a discount loan C) a negotiable CD D) a customer’s checking account ANSWER A
Date: September 10th, 2020
An economy that has a domestic and a foreign sector is called: A) a mixed economy. B) an open economy. C) a closed economy. D) a command economy. ANSWER B
Date: September 10th, 2020
Banks may borrow from or lend to another bank in the Federal Funds market. A loan of excess reserves from one bank to another bank is recorded as a(n) ________ for the borrowing bank and a(n) ________ for the lending bank. A) asset; asset B) asset; liability C) liability; liability D) liability; asset ANSWER […]
Date: September 10th, 2020
The U.S. imports Japanese cars with a domestic price of 5,000,000 yen and the yen/dollar exchange rate is 120 on January 1, 2003. On January 1, 2004 the yen/dollar exchange rate is 125. What is the dollar price of the cars on January 1, 2003? What is the dollar price of the cars on January […]
Date: September 10th, 2020
A perfectly competitive market is characterized by a large number of small firms that produce a differentiated product. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
The Dodd-Frank legislation of 2010 permanently increased the federal deposit insurance to A) $40,000. B) $100,000. C) $200,000. D) $250,000. ANSWER D
Date: September 10th, 2020
To convert a nominal GDP to a real GDP, you would use A) the PCE deflator. B) the CPI measure. C) the GDP deflator. D) the PPI measure. ANSWER C
Date: September 10th, 2020
In an open economy firms sell goods and services to: A) households, government, and foreigners. B) just households. C) just the government. D) none of the above. ANSWER A
Date: September 10th, 2020
Which of the following inputs is most likely to be “fixed” in the short run? A) Labor. B) Capital. C) Energy. D) Raw Material. ANSWER B
Date: September 10th, 2020
If nominal GDP in 2001 is $9 trillion, and 2001 real GDP in 1996 prices is $6 trillion, the GDP deflator price index is A) 7. B) 100. C) 150. D) 200. ANSWER C
Date: September 10th, 2020
