Because a bank has a very large pool of buyers and savers, it can:
A. act as an intermediary between firms and government.
B. provide liquidity to some individuals that deposit funds.
C. diversify the risk of saving and borrowing for individuals.
D. act in the best interest of society by ensuring there is enough money for people.
C. diversify the risk of saving and borrowing for individuals.
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Refer to Figure 2-14. If the two countries have the same amount of resources and the same technological knowledge, which country has an absolute advantage in the production of popsicles?
A) Greenland B) They have the same advantage. C) Iceland D) cannot be determined Table 2-20 shows the number of labor hours required to produce a wristwatch and a pound of rice in Japan and Thailand.
You know that a candy bar cost five cents in 1962 . You also know the CPI for 1962 and the CPI for today. Which of the following would you use to compute the price of the candy bar in today's prices?
a. five cents (1962 CPI / today's CPI) b. five cents ((today's CPI - 1962 CPI)/1962 CPI) c. five cents (today's CPI / 1962 CPI) d. five cents today's CPI - five cents 1962 CPI.