What does it mean for a firm to be breaking even?
What will be an ideal response?
If a firm is breaking even, it is earning exactly a normal rate of return. This means that total revenue is just enough to cover all economic costs including a normal profit.
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Looking at real and nominal interest rates in the United States since 1971, we see that the
A) nominal interest rate has at times been negative. B) real interest rate has been greater than 10 percent for most years. C) real interest rate has at times been negative. D) real interest rate was above 5 percent during the low inflation of the 1970s. E) real interest is generally greater than the nominal interest rate.
Among state member and national banks, __________ have federal deposit insurance through the FDIC
A) all B) virtually all C) a minority D) none of them