Increase net exports-banks turn a profit

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Reference no: EM131393603

1. Which of the following will likely increase net exports?

a) The price level in other countries increase faster than in the U.S.

b) Real income for foreign citizens decrease

c) The U.S. dollar increases in value relative to other currencies

d) U.S. consumers begin to prefer products made in other countries

e) All of the above will increase net exports

2. M1 is composed of

a) currency in circulation, traveler’s checks, and checkable deposits.

b) checking deposits owned by individuals and businesses, savings deposits, and certificates of deposits.

c) currency in bank vaults and government-insured checks.

d) traveler’s checks, credit cards, and e-cash.

3. Banks turn a profit by

a) keeping as many reserves on hand as possible.

b) making loans at a lower interest rate than the rate they offer on their deposits.

c) charging interest rate on their depositors’ accounts.

d) making loans at a higher interest rate than they offer on their deposits.

Reference no: EM131393603

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