Cash assets of a commercial bank consist of
A) notes and coins in the bank's vault, a deposit account at the Fed and loans to other banks.
B) notes and coins in the bank's vault , a deposit account at the Fed and any gold held for the bank at Fort Knox.
C) vault cash, a deposit account at the Fed and the bank's stock holdings.
D) vault cash, a deposit account at the Fed and the value of its depositors' accounts.
A
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In a market with asymmetric information, hidden actions exist if:
A) the buyer or the seller takes actions that are relevant for but not observed by, the other party. B) the production or consumption of the good being transacted gives rise to positive externalities. C) the production or consumption of the good being transacted gives rise to negative externalities. D) the production of the good being transacted involves a huge opportunity cost.
Which of the following is a solution to the problem of moral hazard in the labor market?
A) Provision of real wages B) Provision of nominal wages C) Provision of efficiency wages D) Provision of minimum wages