Author Question: Any bank that uses deposits to make loans: a. operates on a 100 percent reserve system. b. operates ... (Read 85 times)

nautica902 · **on:** Jun 30, 2018

Any bank that uses deposits to make loans:
a. operates on a 100 percent reserve system.
b. operates on a fractional reserve system.
c. does not operate on a reserve system.
d. does not keep reserves in its vaults.
e. charges an interest rate determined by the reserve ratio.

Question 2

If increases in capital per worker lead to increased output per worker, but by decreasing amounts as capital increases, the per-worker production function _____.
a. is vertical
b. has a decreasing slope
c. has an increasing slope
d. has a negative slope
e. is horizontal