Which of the following correctly describes fractional reserve banking?
A. The federal government only insures a fraction of the deposits at most banks.
B. Banks keep a fraction of their loans with other banks to maintain the quality of their loan portfolio.
C. Banks can loan out all but a small fraction of its own money, but must hold all money deposited at the bank on reserve in bank vaults.
D. Banks can loan out all but a fraction of its own money, but must hold all money deposited at the bank on reserve in bank vaults.
Answer: D
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Which aggregate supply curve has a positive slope?
A) both long run and short run B) neither long run nor short run C) short run only D) long run only
In the same city, one job currently pays $6 more per hour than another job. The two jobs have equivalent training requirements, but labor is not migrating toward the higher-paying occupation. Both markets are perfectly competitive. Which of the following conclusions is correct?
a. The lower-paying occupation has less attractive nonmonetary characteristics. b. There are barriers to entry into the higher-paying occupation. c. The higher-paying occupation has a dominant labor union. d. There are barriers to entry into the lower-paying occupation. e. The higher-paying occupation has less attractive nonmonetary characteristics.