Which of the following statements most accurately describes the task of bank asset management?
A) Banks seek the highest returns possible subject to minimizing risk and making adequate provisions for liquidity.
B) Banks seek to have the highest liquidity possible subject to earning a positive rate of return on their operations.
C) Banks seek to prevent bank failure at all cost; since a failed bank earns no profit, liquidity needs supersede the desire for profits.
D) Banks seek to acquire funds in the least costly way.
A
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Natural gas is a natural monopoly. The figure above shows the market for natural gas in the city of Lucknow. When an average cost price rule regulation is imposed, the price per household per month is ________
A) $20 and 30,000 households are served B) $40 and 40,000 households are served C) $40 and 30,000 households are served D) $60 and 20,000 households are served
If products similar to the intermediate good are sold, an approximation to the correct transfer price is
a. average costs b. average fixed costs c. average variable costs d. the market price