Krugman's Economics For The Ap® Course
3rd Edition
ISBN: 9781319113278
Author: David Anderson, Margaret Ray
Publisher: Worth Publishers
expand_more
expand_more
format_list_bulleted
Question
Chapter 5R, Problem 14MCQ
To determine
The correct option that refers to liquid assets kept in the bank’s vault.
Expert Solution & Answer
Answer to Problem 14MCQ
Option c is correct.
Explanation of Solution
Explanation for the correct option:
c.
Banks keep some percentage of their total deposit in a bank vault in the form of cash as per the banking guidelines. It can be referred to as reserves. Therefore, option c is correct.
Explanation for incorrect options:
a.
Deposits refer to the total amount that is safely stored by the bank deposited by the depositor. Banks keep a certain proportion of the deposited amount rest amount is invested or lent to others. Therefore, option a is incorrect.
b.
Banks provide various types of accounts facilities depending upon the type of investors or depositors. Therefore, option b is incorrect.
d.
Money is the medium of exchange through which goods and services can be traded. Therefore, option d is incorrect.
e.
Returns refer to the income that is earned by the depositors for allowing banks to use their capital for a certain period of time. Therefore, option e is incorrect.
Economics Concept Introduction
Liquid assets: Assets that can be converted into cash or cash equivalents in a very short span of time are referred to as liquid assets.
Chapter 5R Solutions
Krugman's Economics For The Ap® Course
Ch. 5R - Prob. 1MCQCh. 5R - Prob. 2MCQCh. 5R - Prob. 3MCQCh. 5R - Prob. 4MCQCh. 5R - Prob. 5MCQCh. 5R - Prob. 6MCQCh. 5R - Prob. 7MCQCh. 5R - Prob. 8MCQCh. 5R - Prob. 9MCQCh. 5R - Prob. 10MCQ
Ch. 5R - Prob. 11MCQCh. 5R - Prob. 12MCQCh. 5R - Prob. 13MCQCh. 5R - Prob. 14MCQCh. 5R - Prob. 15MCQCh. 5R - Prob. 16MCQCh. 5R - Prob. 17MCQCh. 5R - Prob. 18MCQCh. 5R - Prob. 19MCQCh. 5R - Prob. 20MCQCh. 5R - Prob. 21MCQCh. 5R - Prob. 22MCQCh. 5R - Prob. 23MCQCh. 5R - Prob. 24MCQCh. 5R - Prob. 25MCQCh. 5R - Prob. 1FRQCh. 5R - Prob. 2FRQCh. 5R - Prob. 3FRQCh. 5R - Prob. 1CTQCh. 5R - Prob. 2CTQCh. 5R - Prob. 3CTQCh. 5R - Prob. 4CTQ
Knowledge Booster
Similar questions
- It would be inefficient but possible for this economy to produce? 100 1dryers 90 80 C 70 A 60 50 D B 40 30 20 10 10 20 30 40 50 60 70 80 washers O 90 dryers and 20 washers. 50 dryers and 50 washers. O Two of the answers are correct. O 60 dryers and 20 washers.arrow_forwardignore what i put and find the correct answerarrow_forwardA foreign country to which we export but from which we do not import would _____ according the Circular Flow Diagram? • Sell and Buy (or Rent). • Does not sell nor buys. • Sell, but does not buy. • Buys, but does not sell.arrow_forward
- For a certain health insurance policy, losses are uniformly distributed on the interval [0, b].The policy has a deductible of $180 and the expected value of the non-reimbursed portionof a loss is $144. Calculate barrow_forwardfacebook (not Mark Zuckerberg) would do which action according the Circular Flow diagram? Buys, but does not sell. Does not sell nor buys. Sell, but does not buy. Sell and Buy (or Rent).arrow_forwardIt would be impossible for this economy to produce? dryers 100 90 C 80 70 A 60 50 D B 40 30+ 20- 10 10 20 30 40 50 60 70 80 OD C OA B washers 13arrow_forward
- Perusahaan IKBP ingin mendirikan usaha restaurant makanan sehat di tawangmangu, dimana didalam perhitungannya ada beberapa biaya yang akan muncul dalam perhitungan usaha ini, diantaraya : Biaya Tempat Usaha Biaya Renovasi tempat sendiri senilai Rp 15.000.000,- (kondisi ini muncul jika IKBP memilih untuk tidak menyewa ruko tempat lain) Biaya Sewa Tempat Senilai Rp 25.000.000,- (kondisi ini muncul jika IKBP memilih untuk menyewa tempat lain) Di segala kondisi IKBP menganggarkan ada penyusuatan aktiva tetap sebesar 2.5% Biaya Overhead untuk tempat Usaha dianggarkan Rp 2.000.000,- per bulan Biaya Tenaga Kerja Budget gaji karyawannya ada 2 dengan masing-masing gajinya per orang Rp 2.000.000,-/ bulan Biaya Modal Usaha Biaya bunga bank karena meminjam di perbankan sebesar 12% setahun (kondisi ini muncul jika ingin meminjam dari bank) Biaya dari dana talangan pihak Yayasan sebesar 5% (kondisi biaya ini muncul jika tidak ingin memanfaatkan pinjaman dari perbankan) Biaya dengan meminjam…arrow_forwardA monopolist had the following fixed costs and marginal revenue and costs for each unit of production: 0 units where fixed costs are 10 1 unit where MR = 60 & MC = 20 & FC = 10 2 units where MR = 50 & MC = 30 & FC = 10 3 units where MR = 45 & MC = 38 & FC = 10 4 units where MR = 40 & MC = 40 & FC = 10 How many units should the firm produce and why?arrow_forwardRespond to this post. Hello Professor, A rise in consumption in the economy would cause an increase in aggregate demand. Therefore, when consumers spend money on everyday goods and services, it not only helps to stimulate economic growth, but it could also present potential issues like unsustainable debt levels or inflation. I believe that it would be beneficial to consider such factors and adopt a purchasing strategy to help navigate the challenges posed by inflation or unsustainable debt levels. First, do you think our business will be affected because inflation is rising? How? Yes, I do believe that the business will be affected because of inflationary pressures. Inflation rising will affect the cost of goods, services, and labor, which could lead to higher operating expenses. The potential reduction of profit margin because of inflation could lead to a smaller percentage of revenue being retained as profit. Therefore, inflation rising will force us to raise prices for…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSON
Engineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education