A bank is said to have enough liquidity if:
A) it has enough funds to conduct its day-to-day businesses and meet the regulatory requirements.
B) the value of its assets exceeds the value of its liabilities by at least $50,000.
C) it operates for seven days a week for more than 12 hours a day.
D) it holds deposits amounting to at least $100,000.
A
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Suppose an excise tax of $0.75 is imposed on every pack of cigarettes sold and sellers are responsible for paying this tax. How would the imposition of the tax be illustrated in a graph?
A) The supply curve for cigarettes would shift to the left by more than $0.75. B) The supply curve for cigarettes would shift to the right by $0.75. C) The supply curve for cigarettes would shift to the left by $0.75. D) The supply curve for cigarettes would shift to the left by less than $0.75.
The effect of diminishing marginal returns outweighing the effect of spreading out the fixed costs is illustrated by the ________ average cost curve ________.
A. long-run; decreasing B. long-run; increasing C. short-run; decreasing D. short-run; increasing