The primary purpose of the legal reserve requirement is to:
A. prevent banks from hoarding too much vault cash.
B. provide a means by which the monetary authorities can influence the lending ability of
commercial banks.
C. prevent commercial banks from earning excess profits.
D. provide a dependable source of interest income for commercial banks.
B. provide a means by which the monetary authorities can influence the lending ability of
commercial banks.
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According to your textbook, globalization tends to increase the productivity of nations through
A) improvements in the labor skills of their citizens. B) increasing technological knowledge. C) improving the coordination of individual economic plans. D) doing all of the above.
The figure below depicts the short-run market equilibrium in a perfectly competitive market and the cost curves for a representative firm in that market. Assume that all firms in this market have identical cost curves.
In the long run equilibrium in this market:
A. price will equal $5, and there will be 20 firms in the industry. B. price will equal $5, and there will be 10 firms in the industry. C. price will equal $5 and total output will equal 500 units, but there is not enough information to determine how many firms will be in the industry. D. price will equal $8, and there will be 20 firms in the industry.