What does a bank do with the money that you deposit?
A. Banks use the money for ordinary business expenses like paying employees.
B. Banks keep your money in a vault in case you return to withdraw it.
C. Banks lend most of the money to people who want to borrow.
D. Banks use the money to purchase assets like gold and other precious metals.
Ans: C. Banks lend most of the money to people who want to borrow.
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Refer to Figure 6-10. A perfectly inelastic supply curve is shown in
A) Panel A. B) Panel B. C) Panel C. D) Panel D.
Suppose an oligopolistic producer assumes its rivals will ignore a price increase but match a price cut. In this case the firm perceives its:
A. demand curve as being of unit elasticity throughout. B. supply curve as kinked, being steeper below the going price than above. C. demand curve as kinked, being steeper below the going price than above. D. demand curve as kinked, being steeper above the going price than below.