Firms seek to differentiate their product
A) to avoid state and federal regulation.
B) to create an illusion of value.
C) to strengthen their demand and to make it more inelastic.
D) to strengthen their demand and to make it more elastic.
C
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The study of economics arises due to
A) resources. B) greed. C) money. D) scarcity.
A bank's assets consist of $500,000 in total reserves, $1,600,000 in loans, and a building worth $1,200,000 . Its liabilities and capital consist of $2,000,000 in demand deposits and $1,300,000 in capital. If the required reserve ratio is 30 percent, what is the level of the bank's excess reserves? How much money could the excess reserves be used to create in the banking system as a result?
a. zero; zero b. $50,000; $50,000 c. $50,000; $500,000 d. The bank has insufficient reserves to meet its reserve requirements.