Author Question: If the market value of what it has lent is less than the market value of what it has borrowed, a ... (Read 58 times)

silviawilliams41 · **on:** Jun 29, 2018

If the market value of what it has lent is less than the market value of what it has borrowed, a financial institution's net worth is ________ and it is ________.

A) negative; illiquid and insolvent
B) positive; illiquid and insolvent
C) negative; insolvent but not necessarily illiquid
D) positive; insolvent but not necessarily illiquid
E) negative; illiquid but not necessarily insolvent

Question 2

The quantity of real GDP demanded on the AD curve is the equilibrium real GDP when

A) equilibrium expenditure is greater than real GDP.
B) aggregate planned expenditure equals real GDP.
C) the price level equals the equilibrium price level.
D) aggregate planned expenditure is greater than real GDP.
E) aggregate planned expenditure is less than real GDP.