Generally with bond ratings, the lower the rating, the ________ the interest rate an investor will receive and the ________ the the risk that the issuer of the bond will default

The First National Bank of Townville has $125,000 in U.S. government securities, $200,000 in savings accounts, $300,000 in checking accounts, $50,000 in its reserve account at the Fed, $10,000 of currency in its vault, and loans of $250,000

What is the amount of its reserves?

Figure 11-9

In Figure 11-9, how much more than the long-run competitive price will the profit-maximizing monopolist charge?

a.
$1

b.
$2

c.
$3

d.
$11