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Author Question: In which of the following markets are buyers likely to have private information? A) The market ... (Read 79 times)

Tazate

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on: Jun 29, 2018
In which of the following markets are buyers likely to have private information?
 
  A) The market for used cars
  B) The market for fresh fruits and vegetables
  C) The market for banking services
  D) The market for health insurance

Question 2

The desired reserve ratio is 10 percent. Joe deposits 1,000 in Bank A. Bank A keeps its minimum desired reserves and lends the excess to Fred. Fred spends his loan at J.C. Penney. J.C. Penney deposits the check it receives from Fred in Bank B.
 
  Bank B keeps its minimum desired reserves and lends the excess to Mary. How much can Bank B lend to Mary? A) 900
  B) 90
  C) 810
  D) 100
  E) 1,000


nickk12214

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Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

C


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