A Bank Which Has Assets of $85 Billion and a Net

question 150

Multiple Choice

A bank which has assets of $85 billion and a net worth of $10 billion must have:

• A)liabilities of $75 billion.
• B)excess reserves of $10 billion.
• C)liabilities of $10 billion.
• D)excess reserves of $75 billion.

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Definitions:

Predatory Pricing

A pricing strategy where a product or service is set at a very low price with the intent of driving competitors out of the market or creating barriers to entry for potential new entrants.

Price Fixing

A practice where businesses agree on the selling price of their products or services, typically to prevent competition and increase profits, which is often illegal.

Geographical Pricing

A pricing strategy where the price of a product varies depending on the geographical location or market.

Predatory Pricing

A competitive strategy in which a business sets extremely low prices to eliminate competition and monopolize the market.