What are the advantages of bank deposits compared to other types of assets?
What will be an ideal response?
Compared to cash, bank deposits offer safety against theft and may also pay interest. Compared with financial assets such as Treasury bills, bank deposits are more liquid. Deposits against which checks can be written offer a convenient way to make payments.
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Spending VCU4 on real-world goods and services causes the nation's:
a. Demand for real goods and services to remain the same and monetary base to fall. b. Demand for real goods and services to rise and M2 money supply to fall. c. Demand for real goods and services to remain the same and M2 money multiplier to fall. d. Demand for real goods and services to rise and monetary base to remain the same.
A perfectly competitive industry's market price is found by
A) finding the point on the market demand curve where the largest number of units will be purchased. B) locating the intersection of the market demand and market supply curves. C) the horizontal summation of all the industry firms' individual supply curves. D) identifying the price at which each firm realizes its largest economic profit.