Refer to the above table. If the price is $5, the maximum economic profits this firm could earn is

When a bank receives deposits,

A) it must hold the entire amount as reserves in case of withdrawal. B) the Fed requires it to hold only a small percentage as reserves. C) it and it alone decides how much it will hold as reserves. D) its liabilities increase in amount but its assets do not change. E) its assets increase in amount but its liabilities do not change.

Which of the following would contribute, directly or indirectly, to a deficit in the capital account of the U.S. balance of payments?

a. A British citizen buys stock in Ford. b. A British citizen buys a bond from Ford. c. Interest rates fall in the United States relative to their level in the rest of the world. d. Australian publisher Rupert Murdoch buys The New York Times. e. Developing countries become more stable and so borrow less from U.S. banks.