Banks are more willing to lend money to those who have a sizable amount of their own money at risk because
a. They like lending to individuals who usually don't need the money
b. Those with their own money at risk are more likely to only propose viable projects to the bank
c. Borrowers with their own capital invested are more likely to make payments on any loan that is made.
d. Both B&C
d
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Nancy's utility of wealth curve is given in the above figure. Option A gives Nancy $100 for sure. Option B gives Nancy $50 half the time and $150 half the time. Nancy's expected utility of option A
A) is greater than the expected utility of option B. B) is the same as the expected utility of option B. C) is less than the expected utility of option B. D) could be either greater or less than the expected utility of option B.
The M1 measure of the money supply equals
A) currency plus checking account balances plus traveler's checks plus savings account balances. B) currency plus checking account balances plus traveler's checks. C) currency plus checking account balances. D) paper money plus coins in circulation.