Which of the following explains why banks try to keep their holdings of excess reserves low?
A. To escape Fed penalties.
B. To please bank examiners.
C. To keep the money multiplier low.
D. To maximize profits.
Answer: D
Economics
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If a country has a trade surplus then
a. S > I and Y > C + I + G. b. S > I and Y < C + I + G. c. S < I and Y > C + I + G. d. S < I and Y < C + I + G.
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Which of the following help to correct for the market failure of imperfect information?
A. used car warranties B. medical licensing C. truth-in-advertising regulations D. All of the above are correct.
Economics