Secondary reserves are so called because
A) they can be converted into cash with low transactions costs.
B) they are not easily converted into cash, and are, therefore, of secondary importance to banking firms.
C) 50% of these assets count toward meeting required reserves.
D) they rank second to bank vault cash in importance of bank holdings.
A
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Bad weather is likely to
A) raise the total revenue farmers receive for their foodstuffs, assuming that demand for their products is inelastic. B) lower the total revenue farmers receive for their foodstuffs, assuming that demand for their products is elastic. C) leave the total revenue farmers receive for their foodstuffs unchanged. D) change the income elasticity of demand for food. E) c and d
If the marginal cost of producing a television is constant at $200, then a firm should produce this item
A) only if the marginal benefit it receives is greater than $200 plus an acceptable profit margin. B) as long as the marginal benefit it receives is just equal to or greater than $200. C) as long as its marginal cost does not rise. D) until the marginal benefit it receives reaches zero.