A common way used to align the interests of managers with the interests of equity holders is

If a bank has $200,000 of checkable deposits, a required reserve ratio of 20 percent, and it holds $80,000 in reserves, then the maximum deposit outflow it can sustain without altering its balance sheet is

A) $50,000. B) $40,000. C) $30,000. D) $25,000.

U.S. corporation Wright Air Conditions borrows funds to build a factory in the U.S. and a factory in Mexico. Borrowing for factories in which location(s) is included in the U.S. demand for loanable funds?

a. only the U.S. b. only Mexico c. Mexico and the U.S. d. neither Mexico nor the U.S.