The monetary base does NOT include which of the following items?
i. Federal Reserve notes
ii. banks' reserves at the Federal Reserve
iii. U.S. government securities owned by the Federal Reserve
A) i only
B) ii only
C) iii only
D) both i and ii
E) both ii and iii
C
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What is scarcity and why does it exist? How is scarcity related to the study of economics?
Banks serve the role of a financial intermediary; however, banks cannot survive in the long term if they are paying out more in ___________ to depositors than they are receiving from borrowers.
a. interest b. revenue c. taxes d. income
Federal budget deficits became progressively smaller during the 1990s, and turned into a surplus by 1998
Indicate whether the statement is true or false
Even though mass transit systems such as buses are available in most cities in the United States, many residents decide to drive to work in their own vehicles because
A. there is no opportunity cost of them to drive. B. they are not rational. C. the opportunity cost of riding a bus is too high for them. D. they do not behave according to the economic way of thinking.