Question 1

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 CE) C) and D)
F) A) and B)

Question 2

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 3

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' equityE) A) and B)
F) A) and C)

Question 4

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 ofE) None of the above
F) B) and C)

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.

Correct Answer
verified

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

Correct Answer
verified
a)Total assets of the bank = Reserves + ...
View Answer

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?

Correct Answer
verified

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?

Correct Answer
verified

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.

Correct AnswerverifiedShow Answer

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

Correct Answerverifieda)Total assets of the bank = Reserves + ...View AnswerShow Answer

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?

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
a)Total assets of the bank = Reserves + ...
View Answer

Correct Answer
verified

Correct Answer
verified