The reserves of financial institutions:
a. Are assets that financial institution's try to keep at the legal limit.
b. Are made up mainly of government securities and high quality corporate bonds.
c. Include the liability called Borrowing from the central bank.
d. None of the above is correct.
e. Are the largest liability in a financial institution's balance sheet.
Question 2
Assume that the central bank increases the reserve requirement. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and real GDP in the context of the Three-Sector-Model?
a. The real risk-free interest rate rises, and real GDP remains the same.
b. The real risk-free interest rate rises, and real GDP falls.
c. The real risk-free interest rate and real GDP remain the same.
d. The real risk-free interest rate falls, and real GDP rises.
e. There is not enough information to determine what happens to these two macroeconomic variables.
The theoretical design of nature reserves, based on the tenets of island biogeography.
World coal reserves in gigatonnes
World oil reserves
The world has been horrified recently at a U.S. Congress so polarized and paralyzed that it cannot p
Vast reserves of shale gas can be recovered through formation fracturing (“fracking”)
Potential gas reserves have increased significantly with the discovery of new shale gas formations