financial products, the special services they 31. Large banks that advertise the
ID: 1159302 • Letter: F
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financial products, the special services they 31. Large banks that advertise the attributes of their provide to customers and the unique features of their credit cards are engaging i market behavior (b) product differentiation (c) market share domination (d) all of the above n (a) oligopoly If prices increase, the purchasing power value of money created by banks declines, but the purchasing power value of legal tender money remains unchanged. 32. 33. The reason we accept checkbook money as "money" in the US is because (a) unlike currency, US checkbook money is backed by gold (b) the FDIC guarantees the value of US checkbook money (c) US consumers and business firms willingly exchange goods and services for US checkbook money (d) all of the above 34. If the US government offered to sell $1 bills for 50 cents (only on July 4), the demand curve for $1 bills on July 4 (at the 50 cent price) would become (a) perfectly vertical (inelastic) (b) perfectly horizontal (elastic) (c) perfectly curved (unit elastic) (d) upward sloping 35. Loans and investments made by banks are not counted in the US GDP measure because these activities do not result in the production of domestic goods (i.e., domestic product).Explanation / Answer
Question:- large banks that advertise the attributes of their financial products the special services they provide to customers and unique features of their credit cards are engaging in
Answer:- Product differentiation
Reason:- When any service provider advertise and focus on its service features and quality, the focus remains on product differentiation.
Question:- if price increases, the purchasing power value of money created by banks decline but the purchasing power value of legal tender money remains unchanged
Answer:- False
Reason:- When price increases, both the purchasing power value of money created by banks and purchasing power value of legal tender money declines
Question:- the reason we accept check book money as money in the US is because
Answer:- All of the above
Question:- if the US government offered to sell $1 bills for 50 cents (only on July 4) , the demand curve for $1 bills on July 4 would become
Answer:- Perfectly horizontal
Reason:- The entire population will demand to buy $1 bill in exchange of 50 cents thus the demand will be perfectly elastic in nature.
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