1)

Bank of Soques
Assets		Liabilities and Owners Equity
Reserves	$1,000	Deposits	$9,000
Loans	$8,200	Debt	$600
Short-term securities	$800	Capital (owners equity)	$400

What is the bank's leverage ratio?

11.1

4

25

45

2)Suppose a closed economy has the following attributes:

Consumption	$1,000
Investment	$200
Taxes	$230
Private Saving	$275

For this economy, GDP is equal to

(Hint: You only need to use the equation for Private Saving.)

1,275

1,430

1,505

1,655

3)

Which foreign policies tend to increase an economy's long-run real GDP per person?

The elimination of restrictions on both foreign trade and foreign investment

The introduction of restrictions on both foreign trade and foreign investment

The introduction of restrictions on foreign trade and the elimination of restrictions on foreign investment

The elimination of restrictions on foreign trade and the introduction of restrictions on foreign investment