This topic contains a solution. Click here to go to the answer

Author Question: Which of the following is true of banks? a. Banks reduce the opportunity cost of holding idle cash. ... (Read 77 times)

washai

  • Hero Member
  • *****
  • Posts: 523
Which of the following is true of banks?
 a. Banks reduce the opportunity cost of holding idle cash.
 b. Banks act as intermediaries between the government and private investors.
  c. Banks can reduce risk by lending to rich borrowers.
 d. Banks reduce the transaction costs of borrowing and lending money.
 e. Banks can reduce risks by extending more loans.

Question 2

An increase in net wealth will:
 a. increase consumption and saving at each level of income.
 b. increase saving and decrease consumption at each level of income.
 c. decrease consumption and saving at each level of income.
 d. increase consumption and decrease saving at each level of income.
 e. have no effect on consumption because consumption is a function of income.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

fffftttt

  • Sr. Member
  • ****
  • Posts: 322
Answer to Question 1

d

Answer to Question 2

d




washai

  • Member
  • Posts: 523
Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it


sultansheikh

  • Member
  • Posts: 335
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

Illicit drug use costs the United States approximately $181 billion every year.

Did you know?

The Romans did not use numerals to indicate fractions but instead used words to indicate parts of a whole.

Did you know?

The U.S. Pharmacopeia Medication Errors Reporting Program states that approximately 50% of all medication errors involve insulin.

Did you know?

Most childhood vaccines are 90–99% effective in preventing disease. Side effects are rarely serious.

Did you know?

The training of an anesthesiologist typically requires four years of college, 4 years of medical school, 1 year of internship, and 3 years of residency.

For a complete list of videos, visit our video library