Considering State Chartered Banks

question 6

Multiple Choice

Considering state chartered banks:

• A) most elect to join the Federal Reserve System.
• B) those with assets exceeding $100 million must join the Federal Reserve System.
• C) most elect not to join the system.
• D) only those that join the system must abide by reserve requirements.

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Definitions:

Average-Fixed-Cost

The fixed costs of production divided by the quantity of output produced; it decreases as production increases.

Average-Variable-Cost

The total variable cost divided by the quantity of output produced.

Marginal Costs

The investment required to manufacture an incremental unit of a product or service.

Variable Costs

Costs that change in proportion to the level of activity or production volume.