Which of the following is not a consequence of the Fed changing the required reserve ratio?
A) Changes in the ratio are easily incorporated into banks' routine management.
B) Decreasing the ratio will increase excess reserves.
C) Increasing the ratio will decrease the amount of reserves banks have to loan.
D) Changes in the ratio effectively places a tax on banks' deposit taking and lending activities.
Answer: A
You might also like to view...
Real GDP in a small country is worth $8 billion. The population of the country is 200,000. What is per capita Real GDP?
A) $30,000 B) $40,000 C) $60,000 D) $300,000
A contestable market is one where:
A. there are infinitely many firms. B. entry necessarily occurs. C. there is the legitimate threat of entry. D. firms can maintain the monopoly price.
When long-run average costs decline as output increases, the firm is experiencing
A) negative returns to scale. B) diseconomies of scale. C) constant returns to scale. D) economies of scale.
When output is 1,
A. marginal cost equals variable cost. B. total cost equals average total cost. C. total cost equals fixed cost plus variable cost. D. All of the choices are correct.