Collateral is
A) the interest rate that banks charge high-quality borrowers.
B) assets pledged to the bank in the event the borrower defaults.
C) the difference between the value of a bank's assets and the value of a bank's liabilities.
D) required reserves minus excess reserves.
B
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Alex is a non-union employee in a factory. If the union negotiates certain benefits for the employees, Alex enjoys all the benefits although he does not pay the union fee. His behavior is an example of ________
A) rent-seeking B) free-riding C) profit maximizing D) rivalry
Compensation of employees
a. is included in the expenditure approach to GDP accounting b. is part of consumption expenditures c. is the largest component of national income d. excludes contributions to employees' Social Security e. includes rental income