Which of the following is not a financial intermediary? a. a bank with a state c
ID: 1197141 • Letter: W
Question
Which of the following is not a financial intermediary?
a. a bank with a state charter
b. a bank with a federal charter
c. a savings and loan association
d. the Federal Deposit Insurance Corporation
e. a credit union
If your bank receives a demand deposit of $20,000, and makes the maximum loan possible of $17,000, then the legal reserve requirement must be
a. 8.5 percent
b. 0.85 percent
c. 15 percent
d. 0.15 percent
e. 1.5 percent
A recessionary gap
a. will automatically close, according to the Keynesian model
b. represents actual physical output lost
c. is associated with rising labor prices
d. implies an equilibrium level of output less than the full-employment level
e. is of little consequence in a capitalist economy
If G = T, the budget is
a. contractionary
b. balanced
c. in surplus
d. in deficit
e. none of the above
An example of a leakage in the circular flow model is
domestic spending for imports
foreign spending on exports
consumer spending on goods and services
business borrowing to invest
none of the above
Explanation / Answer
Which of the following is not a financial intermediary?
Ans. The Federal Deposit Insurance Corporation is not a financial intermediary
If your bank receives a demand deposit of $20,000, and makes the maximum loan possible of $17,000, then the legal reserve requirement must be
(rr)*20000 = 17000
Then RR = 17000/20000 = 0.85
A recessionary gap implies an equilibrium level of output less than the full-employment level.
If G = T, the budget is balanced. (G-T) < 0 means that the government is running a surplus because T > G; and (X-M) < 0 means the external position is in deficit because imports are greater than exports. The Budget Deficit (G – T) – negative if in surplus, positive if in deficit.
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