Reserve ratio is 10% bank receives new checkable deposit of $2000

Commercial banks create money when they:

A. accept cash deposits from the public. B. purchase government securities from the central banks. C. create checkable deposits in exchange for IOUs. D. raise their interest rates.

To practice third-degree price discrimination, each of these market conditions must be met except which one?

A) All consumers must have the same own price elasticity of demand. B) No arbitrage opportunities can exist between customer groups. C) The firm must be able to determine in which group each customer belongs. D) The firm must have market power.