For a bank, "reserves" refers to:
A. the loans it will call back early if a recession starts.
B. the cash it keeps on hand to meet withdrawal requests.
C. the part-time workers that will be offered full-time jobs if necessary.
D. the cash it lends to households or businesses who want to borrow.
Ans: B. the cash it keeps on hand to meet withdrawal requests.
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Economic rent is earnings in excess of what?
a. opportunity cost b. total costs c. taxes d. hidden costs
If the free market is called upon to provide public goods, then:
A. there will more public goods provided than is optimal. B. there will be fewer public goods provided than is optimal. C. the market will provide the optimal number of public goods. D. the market price will be correct, and the optimal amount of output of public goods will be produced.