In the federal funds market,
A) banks make loans to the Fed.
B) banks make loans to other banks.
C) the Fed makes short-term loans to banks.
D) the Fed makes long-term loans to banks.
B
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A monopolist faces an average total cost of $6 when it produces 200 units of its product. If it sells the 200 units at $8 per unit, ________
A) the monopolist incurs a loss of $200 B) the monopolist incurs a loss of $400 C) the monopolist makes a profit of $200 D) the monopolist makes a profit of $400
If the demand-side effects of supply-side tax cuts are greater than the supply-side effects, then we can expect the result to be a(n)
a. decrease in output and prices. b. decrease in output and an increase in prices. c. increase in output and prices. d. increase in output and a decrease in prices.
Which of the following would not be a government transfer expenditure?
A. contribution of employers to support the Social Security program B. social security payments to the aged C. unemployment compensation benefits D. payments to the widows of war veterans
One would expect the price of a share of stock to fall if
A. expected dividends paid on the stock rise. B. the risk of the business falls. C. the interest rate rises. D. the economy expands.