Today, reserve requirements are:
A. changed instead of making changes in the discount rate.
B. really not a direct tool of monetary policy.
C. changed whenever the target federal funds rate is changed.
D. set in a way that makes reserve demand highly unpredictable.
Answer: B
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The members of the Federal Reserve Board of Governors serve:
a. 6-year terms. b. 4-year terms. c. 10-year terms. d. 14-year terms. e. 2-year terms.
Since the 1980's, most of the economic growth has come from
A. emerging economies in Africa. B. eastern European countries. C. emerging economies of Asia. D. middle eastern countries.
Gross domestic product (measured in real dollars) is an important social tool because it provides
What will be an ideal response?
The relationship between the producer price index (PPI) and the consumer price index (CPI) is such that, in the short run
A. the PPI usually increases before the CPI. B. the CPI and the PPI usually move in opposite directions. C. the CPI usually increases before the PPI. D. the CPI and the PPI usually move simultaneously.