For a bank to have lending power, its required reserves must:
a. be smaller than its legal reserves.
b. exceed its legal reserves.
c. be smaller than its excess reserves.
d. exceed its excess reserves.
e. exceed its vault cash.
a
Economics
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In the absence of externalities, what can be said about the invisible hand of the marketplace?
a) It induces people to act in a matter inconsistent with self-interest. b) It leads to a market outcome that maximizes total benefit to society. c) It increases the transaction costs of contracting between parties in an exchange. d) It is unable to resolve inherent inefficiencies in market system.
Economics
Is the minimum wage an example of a price floor or a price ceiling? Why?
What will be an ideal response?
Economics