The main difference between regular open-market operations and quantitative easing (QE) is:
A. that open-market operations is conducted by the Fed, while quantitative easing is mandated by congress.
B. whether the Fed is trying to increase or decrease interest rates
C. the type and term of the financial assets targeted.
D. whether the Fed is buying or selling financial assets
Answer: C
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Why do banks create money? Do they create money to help the Federal Reserve control the money supply or is there a more basic reason?
What will be an ideal response?
In the Dred Scott decision (1857), the Supreme Court declared that:
a. Congress could not admit a free state without simultaneously admitting a slave state. b. slavery was not legal in the western territories. c. fugitive slaves were not legally protected from bounty hunters. d. Congress could not prohibit slavery in the western territories.
Which of the following has proved to be spectacularly false, at least recently?
a. as an expansion proceeds, people will hold no more cash b. as an expansion proceeds, banks will hold no more excess reserves c. the oversmplified money multiplier formula is predicated on two critical assumptions d. All of the above are false.
Under what circumstances would a monopolist price be as low as the price that would prevail in a perfectly competitive market?
What will be an ideal response?