The money multiplier tends to be greater when
A) individuals hold less cash. B) individuals hold more cash.
C) the reserve ratio increases. D) banks hold more excess reserves.
A
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According to the text, in the absence of uncertainty, no one can obtain a profit from the exclusive ownership of a scarce resource, such as a patent or a franchise, because
A) demand curves will be perfectly elastic. B) marginal cost will equal marginal revenue. C) profit requires active production rather than static ownership. D) the cost of retaining ownership will rise to eliminate any profit. E) the tax on capital gains will eliminate any profit.
Calculate cumulative losses or gains if you buy (long) 4corn futures contracts @ $5.96/bushel one day and settlement prices will be at $5.50/bushel corn on the later day you evaluate your position. Initial and maintenance margins for corn are $2,700 and $2,000 per contract. Compute gains or losses and then compare your computed number to the following possible answers.
A. A loss of $9,200. B. A gain of $9,200. C. A gain of $10,800. D. A loss of $10,800.