Which of the following is true of banks?
a. Banks reduce the opportunity cost of holding idle cash
b. Banks act as intermediaries between the government and private investors.
c. Banks can reduce risk by lending to rich borrowers.
d. Banks reduce the transaction costs of borrowing and lending money.
e. Banks can reduce risks by extending more loans.
d
Economics
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Refer to Figure 15-3. In the figure above, when the money supply shifts from MS1 to MS2, at the interest rate of 3 percent households and firms will
A) sell Treasury bills. B) want to hold more money. C) neither buy nor sell Treasury bills. D) buy Treasury bills.
Economics
Suppose the market demand for good X is given by QXd = 20 - 2PX. If the equilibrium price of X is $5 per unit then consumer surplus is
A. $75. B. $100. C. $25. D. $50.
Economics