Question 1

Assuming all else equal,if a household is pessimistic about future income,it is likely to cause a(n)________ the current credit supply curve of the household.

Accepted Answer

A)  downward movement along 
B)  upward movement along 
C)  right shift of 
D)  left shift of 
A)  downward movement along 
B)  upward movement along 
C)  right shift of 
D)  left shift of

Question 2

The following figure shows credit demand and credit supply curves.
  
-Refer to the figure above.Assume that the loanable funds market initially is in equilibrium at point C.How is the equilibrium likely going to change if college tuition becomes free for all students?

Accepted Answer

A)  Shifts to point B 
B)  Shifts to point A 
C)  Shifts to point D 
D)  Remains at point C 
A)  Shifts to point B 
B)  Shifts to point A 
C)  Shifts to point D 
D)  Remains at point C

Question 3

The following table shows different statistics related to the Bank of Barylia.
   
From the information in the table,estimate the following:
a)The total assets of the bank
b)The total liabilities of the bank
c)The stockholders' equity of the bank

Accepted Answer

a)Total assets of the bank = Reserves +

Question 4

Scenario: Alpha Bank has $100,000 in total assets and $45,000 in total liabilities. Beta Bank has $250,000 in total assets and $220,000 in total liabilities.
-Refer to the scenario above.Which of the two banks is more prone to bank runs and why?

Accepted Answer

A)  Alpha Bank because it has less in total assets 
B)  Beta Bank because it has more in total liabilities 
C)  Alpha Bank because it is a smaller bank in general 
D)  Beta Bank because its total liabilities are closer to its total assets so it has lower stockholders' equity 
A)  Alpha Bank because it has less in total assets 
B)  Beta Bank because it has more in total liabilities 
C)  Alpha Bank because it is a smaller bank in general 
D)  Beta Bank because its total liabilities are closer to its total assets so it has lower stockholders' equity

Assuming all else equal,if a household is pessimistic about future income,it is likely to cause a(n)________ the current credit supply curve of the household.

The following figure shows credit demand and credit supply curves. -Refer to the figure above.Assume that the loanable funds market initially is in equilibrium at point C.How is the equilibrium likely going to change if college tuition becomes free for all students?

The following table shows different statistics related to the Bank of Barylia. From the information in the table,estimate the following: a)The total assets of the bank b)The total liabilities of the bank c)The stockholders' equity of the bank

Scenario: Alpha Bank has $100,000 in total assets and $45,000 in total liabilities. Beta Bank has $250,000 in total assets and $220,000 in total liabilities. -Refer to the scenario above.Which of the two banks is more prone to bank runs and why?

The Principles and Practice of Economics

Economic Methods and Economic Questions

Optimization: Doing the Best You Can

Demand, Supply, and Equilibrium

The Wealth of Nations: Defining and Measuring Macroeconomic Aggregates

Aggregate Incomes

Economic Growth

Why Isn't the Whole World Developed?

Employment and Unemployment

The Monetary System

Short-Run Fluctuations

Countercyclical Macroeconomic Policy

Macroeconomics and International Trade

Open Economy Macroeconomics

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Exam 10: Credit Markets

Assuming all else equal,if a household is pessimistic about future income,it is likely to cause a(n)________ the current credit supply curve of the household.

The following figure shows credit demand and credit supply curves. -Refer to the figure above.Assume that the loanable funds market initially is in equilibrium at point C.How is the equilibrium likely going to change if college tuition becomes free for all students?

The following table shows different statistics related to the Bank of Barylia. From the information in the table,estimate the following: a)The total assets of the bank b)The total liabilities of the bank c)The stockholders' equity of the bank

Scenario: Alpha Bank has $100,000 in total assets and $45,000 in total liabilities. Beta Bank has $250,000 in total assets and $220,000 in total liabilities. -Refer to the scenario above.Which of the two banks is more prone to bank runs and why?

The Principles and Practice of Economics

Economic Methods and Economic Questions

Optimization: Doing the Best You Can

Demand, Supply, and Equilibrium

The Wealth of Nations: Defining and Measuring Macroeconomic Aggregates

Aggregate Incomes

Economic Growth

Why Isn't the Whole World Developed?

Employment and Unemployment

The Monetary System

Short-Run Fluctuations

Countercyclical Macroeconomic Policy

Macroeconomics and International Trade

Open Economy Macroeconomics

Filters