A client has $100,000 on deposit at year-end and owes the bank $250,000 on a note payable. The borrowing agreement calls for the client to maintain a minimum (compensating) balance of $40,000 on deposit during the life of the bank loan. On the balance sheet, the asset cash should be stated at $60,000, the excess of the deposit over the compensating balance.

Provide two microeconomic statements and two macroeconomic statements. Classify your statements as positive or normative, and explain your classifications

What will be an ideal response?

Imagine a 2,000-acre park with picnic benches, trees, and a pond. Suppose it is publicly owned, and people are invited to enjoy its beauty. When the weather is nice, it is difficult to find parking on summer afternoons. Otherwise, it is a great place. An efficient solution to the parking problem would be to

a. prohibit parking in the vicinity of the park. b. charge higher prices for parking at busy times. c. police the parking area and ticket cars that are parked illegally. d. do nothing.