Banks will keep excess reserves when:
a. they do not foresee profitable opportunities to make loans
b. business conditions generally are depressed
c. they do not foresee opportunities to make secure loans
d. All of the above are correct.
d
You might also like to view...
Which of the following is not correct?
a. The unemployment rate is an imperfect measure of a nation's overall level of economic well-being. b. Most job search in the U.S. economy takes place without intervention by the government. c. Most economists agree that eliminating unemployment insurance would increase the nation's overall level of well-being. d. Other things the same, countries that offer more generous and longer-lasting unemployment insurance benefits are likely to have higher unemployment rates.
Economy A: gross investment equals depreciation Economy B: depreciation exceeds gross investment Economy C: gross investment exceeds depreciation Refer to the information. Positive net investment is occurring in:
A. economy A only. B. economy B only. C. economy C only. D. economies A and B only.