Bank reserves include:
a. High quality (i.e., AAA-rated) loans.
b. Vault cash and deposits at the central bank.
c. Tellers, who are trained and ready to work in case of a general bank strike.
d. Government bonds, high-quality (e.g., AAA) corporate stocks, and cash in circulation.
e. Checking deposits and borrowings from the central bank.
.B
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The above figure shows the U.S. market for 1 carat diamonds. Area A + area B + area C + area D is the
A) deadweight loss from the import quota. B) importers' profit from the quota. C) decrease in consumer surplus due to the import quota. D) gain in total surplus due to the import quota. E) increase in producer surplus due to the import quota.