All of the following are advantages of organizing a business as a sole proprietorship EXCEPT

A) ease of formation.
B) limited liability.
C) ease of decision-making.
D) single taxation.

B

Economics

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A commercial bank has no excess reserves until a depositor places $2,000 in cash in the bank. The reserve ratio is 10%. The bank then lends $1,500 to a borrower. As a consequence of these transactions the bank's excess reserves are:

A. Not affected B. Increased by $200 C. Increased by $300 D. Increased by $500

Economics

Which of the following represents an action by the Federal Reserve that is designed to decrease the money supply?

A. a decrease in the discount rate B. selling government securities in the open market C. a decrease in the required reserve ratio D. a decrease in federal spending

Economics