Which of the following is true about the basis?
A. It tends to be less predictable than the cash price.
B. It can be negative or positive.
C. It is fairly consistent seasonally over time.
D. B and C are correct
Answer: D. B and C are correct
Economics
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Which of the following explains why a bank holds reserves?
I. Banks are required by law to hold reserves. II. To meet depositors' currency withdrawals III. To use them to make loans to households A) I only B) II only C) I and II D) I, II, and III E) I and III
Economics
Because the banking system operates using fractional reserves,
a. the money multiplier is greater than one. b. excess reserves are equal to zero. c. required reserves are equal to 100 percent. d. banks can loan out only their required reserves. e. the money multiplier must be equal to zero.
Economics