A depository institution's profit is derived from the difference between:
a. the interest rate it receives on loans and the rate it receives on investments in government securities.
b. the interest rate it pays on deposits and the rate it receives on loans.
c. its primary deposit and its derivative deposit.
d. its assets and its liabilities.
e. the interest rate it receives on domestic loans and the rate it receives on Eurodollar loans.
b
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In 1990-1991, the government budget deficit ________ mainly due to the ________
A) rose, recession's effect on tax collection B) rose, expenditures of the Persian Gulf War C) fell, recession's effect on government expenditures D) fell, economic stimulus provided by the Persian Gulf War
Suppose an economy has a government budget surplus of $100, net exports of -$400, and a planned investment level of $1,000 . For this economy to be in equilibrium, saving must equal:
a. $700. b. $500. c. $750. d. $250. e. $300.