Consumers have the tendency to replace a more expensive item with an even more expensive item.

Assume that a no-load open-end mutual fund holds securities with a total market value of $12 million, has no liability, and has 500,000 shares outstanding. The net asset value par share of this fund is

A) $24. B) $60. C) $24 million. D) $60 million.

The commercial banking system borrows from the Federal Reserve Banks. As a result, the checkable deposits:

A. of commercial banks are unchanged, but their reserves increase. B. and reserves of commercial banks both decrease. C. of commercial banks are unchanged, but their reserves decrease. D. and reserves of commercial banks are both unchanged.