Which of the following allow banks to minimize the cost to a business of borrowing?
I. Borrowing long and lending short
II. Raising funds from a large number of depositors
III. Creating money by lending all their reserves
A) I only
B) II only
C) I and III
D) II and III
B
You might also like to view...
Higher productivity is the most direct route to higher living standards
a. True b. False
Refer to the table below for a certain product's market in Econland. Assume that the world price of the product is $6. What would be the difference in the total revenue received by foreign producers after a quota of 400 units is imposed, compared against the total revenue received by foreign producers when a $1 per unit tariff is paid?
A. $0 revenue difference
B. $100 more in revenue with a quota than with a tariff
C. $400 more in revenue with a quota than with a tariff
D. $400 more in revenue with a tariff than with a quota