Bank ________ is/are listed on the liability side of the bank’s balance sheet. A) reserves B) capital C) securities D) cash items ANSWER B
Date: September 10th, 2020
Industry X, which is perfectly competitive, is in long-run equilibrium. Assume a new law is passed that requires employers in industry X to provide health insurance to previously uninsured employees. As a result of this new requirement we would expect to observe: A) a decrease in price and an increase in total output in industry […]
Date: September 10th, 2020
The payments system is A) the method of conducting transactions in the economy. B) used by union officials to set salary caps. C) an illegal method of rewarding contracts. D) used by your employer to determine salary increases. ANSWER A
Date: September 10th, 2020
The political stability of countries has an impact on the foreign exchange market. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Assume that there is an improvement in the technology used by firms in a perfectly competitive industry that is initially in long-run equilibrium. In the short run this would cause: A) an increase in the firm’s economic profit. B) a decrease in the firm’s economic profit. C) no change in the firm’s economic profit. D) […]
Date: September 10th, 2020
If the price of a euro (the European currency) increases from $1.00 to $1.10, then, everything else held constant A) a European vacation becomes less expensive. B) a European vacation becomes more expensive. C) the cost of a European vacation is not affected. D) foreign travel becomes impossible. ANSWER B
Date: September 10th, 2020
Everything else held constant, Americans who love French wine benefit most from A) a decrease in the dollar price of euros. B) an increase in the dollar price of euros. C) a constant dollar price for euros. D) a ban on imports from Europe. ANSWER A
Date: September 10th, 2020
Bank capital is equal to ________ minus ________. A) total assets; total liabilities B) total liabilities; total assets C) total assets; total reserves D) total liabilities; total borrowings ANSWER A
Date: September 10th, 2020
A decreased demand for U.S. dollars on the foreign exchange market, all else equal, will result in a depreciation of the U.S. dollar. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
If mortgage brokers do not make a strong effort to evaluate whether the borrower can pay off a loan, this creates a A) severe adverse selection problem. B) decline in mortgage applications. C) call to deregulate the industry. D) decrease in the demand for houses. ANSWER A
Date: September 10th, 2020
