What are the largest asset and the largest liability of a typical bank?
A. Loans of the largest assets and deposits are the largest liability of a typical bank
B. Reserves are the largest asset and deposits are the largest liability of a typical bank
C. Loans of the largest liability and deposits are the largest asset of a typical bank
Ans: A. Loans of the largest assets and deposits are the largest liability of a typical bank
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Everything else held constant, an increase in government spending will cause
A) aggregate demand to increase. B) aggregate demand to decrease. C) the quantity of aggregate demand to increase. D) the quantity of aggregate demand to decrease.
If the inflation rate is decreasing while unemployment is increasing: a. the short-run Phillips curve must have shifted right
b. the short-run Phillips curve must have shifted left. c. it must have involved a movement along the short-run Phillips curve d. it would be inconsistent with any possible Phillips curve scenario.