A Bank in Poor Condition May Take Out a Loan

question 13

Multiple Choice

A bank in poor condition may take out a loan under close Fed scrutiny.Such a loan is known as

• A)a secondary credit discount loan.
• B)a haircut.
• C)a covenant.
• D)a primary credit discount loan.

Understand the concept of price elasticity of supply and how it varies between the short and long run.

Calculate equilibrium prices and understand the role of supply and demand in determining these prices.

Define and calculate price elasticity of demand for various products and understand its implications.

Understand the concept of cross-price elasticity of demand and how it reflects the relationship between substitutes and complements.

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Definitions:

LIFO Method

Last In, First Out, an inventory valuation method that assumes goods purchased last are the first to be sold.

Fiscal Year

A one-year period used for financial reporting and budgeting that may not correspond to the calendar year.

Net Realizable Value

The estimated selling price of goods, minus the cost of their sale or completion.

Dollar-Value LIFO

An inventory valuation method that uses the last-in-first-out (LIFO) principle, adjusted for changes in the dollar's value.