Answered: . A banks assets can be described as…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. A banks assets can be described as the a. Value of the loans and the estimates about the risk that customers will not repay those loans b. Value of the loans and the estimates about the risk that customers will repay those loans c. Value of the loans and the estimates about the risk that firms will purchase those loans d. Value of the loans and the estimate about the risk that firms will repay those loans 2. Banks are able to create money in the economy if a. Banks loan out there excess reserves b. Banks do not loan out part of their excess reserves c. Banks hold all of their deposits as required reserves d. Banks purchase US government securities with all of their excess reserves 3. The characteristic of money that is acceptable to make purchases today that will be paid in the future is known as a a. Store of value b. Standard of deferred payment c. Unit of account d. Transaction cost

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